CML under fire as commonhold bid fails to take off after 14 years

The Commonhold and Leasehold Reform Act of 2002 was supposed to usher in a new system giving people greater rights than under leasehold.

But the meeting was told that while the Council of Mortgage Lenders had been enthusiastic about commonhold before the law was passed, it had since been reluctant to embrace the scheme.

Oxford University’s Professor Susan Bright said of the 16 commonhold sites in England and Wales, there was evidence of “very serious problems” among those trying to sell their homes.

Also ground rents on leasehold properties give the freeholder a secure income of thousands of pounds over the course of a lease, claimed Lord Best. “It is income secured against property and provides no service at all. Who is going to forfeit that unless you are forced to by law?”