Campaigners name for ban on legislation that may see flat homeowners have their property taken from them

Campaigners are calling for an finish to a course of that can lead to leaseholders having their flats taken from them.

The method often known as ‘forfeiture’ is the place a freeholder can take possession of a flat if the proprietor is in breach of their lease on the property.

Probably the most frequent breaches of leases is failure to maintain up with service cost funds. 

Some freeholders could use the specter of forfeiture to make leaseholders adjust to the phrases of their lease, together with paying service expenses. 

‘Rigged system’: Campaigners are calling for an finish to a course of that can lead to leaseholders having their flats taken off them 

Campaigners say that the leasehold system is at present rigged an excessive amount of in favour of freeholders, that are sometimes called landlords in contracts with flat homeowners.

The imbalance is because of leaseholders not having the identical potential to carry freeholders to account and change them in the event that they fall in need of their obligations.

Liam Spender, a trustee of the Leasehold Data Partnership, defined: ‘Forfeiture underlines how one-sided the system is in favour of landlords. 

‘There isn’t a equal that permits the tenant to throw out the owner even when the owner doesn’t do repairs and the roof falls in.’

The balance of power is weighted against leaseholders buying a flat, according to campaigners

The stability of energy is weighted in opposition to leaseholders shopping for a flat, in response to campaigners

Mr Spender hopes that the banning of forfeiture will likely be included within the subsequent spherical of leasehold reform, promised by the Authorities.

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He added: ‘We now have been ready practically 40 years for a reform that might abolish forfeiture. Is that this going to be included within the subsequent spherical of leasehold reform?’

Individually, the Nationwide Leasehold Marketing campaign agreed that forfeiture highlights the modifications that must be made to the leasehold system. 

The group’s founder Katie Kendrick, stated: ‘The entire leasehold system is rotten to the core. The stability of energy is weighted in opposition to leaseholders. It truly is a David versus Goliath battle.’ 

In the meantime, the Authorities responded saying that forfeiture is an ‘excessive measure’ and may solely be used as a final resort.

A DLUHC spokesperson didn’t remark additional on forfeiture, solely referring to different modifications which have just lately been made to the leasehold sector.

He stated: ‘We’ve made important enhancements to the leasehold market by ending floor rents for many new residential leases and additional reform will observe later this parliament. 

‘This may remodel the expertise of leaseholders by making it simpler and cheaper for them to increase their lease or purchase their freehold, with important reductions for these trapped by escalating floor rents.’


A leasehold property has some key variations in comparison with a freehold house.

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When you purchase a leasehold property, you will have to find out about issues equivalent to floor rents and lease extensions.

Right here we clarify a few of the phrases you must know:

1. Leasehold

In contrast to a freeholder, as a leaseholder you don’t personal the land the property is constructed on. A leaseholder basically rents the property on a lease for a variety of years, typically between 90 and 120 years however it may be as excessive as 999 years.

2. Floor rents

Floor lease is the lease paid underneath the phrases of a lease by the proprietor of a constructing to the proprietor of the land on which it’s constructed. The quantity paid depends upon the phrases of the lease.

3. Lease extensions

A lease extension refers to a authorized settlement that extends the time period of an present lease.

4. Shopping for the freehold

When you purchase a freehold property, it means you owns it outright, together with the land it’s constructed on. You’re liable for sustaining your property and land, so that you’ll have to funds for these prices.

When you’re a leaseholder, it’s possible you’ll need to think about shopping for your freehold. There are professionals and cons of doing this, as when you could find yourself having extra management, there may even be extra effort concerned. Extra data on shopping for your freehold could be discovered right here.