Partner Shabnam Ali-Khan has written an article in New Law Journal on the Leasehold and Freehold Reform Bill which is currently working its way through Parliament.
Shabnam shares the current and proposed reforms on the landlord’s ability to recover costs concerning lease extensions and freehold purchase claims for houses and flats, emphasising that the latest reforms seek to significantly limit the landlord’s ability to recover costs. In her analysis of the potential impact on practitioners, Shabnam highlights the implications of stringent cost measures, foreseeing a potential shift towards the use of artificial intelligence (AI) and the potential for landlords to seek cheaper, less experienced legal representation, all of which risks potential errors and negligence claims.
Whether these proposals come into force is another story. At the time of writing, there has been media speculation that the proposed ground rent caps have already been diluted following challenges from pension and investment managers who will lose out. We may see a cap to £250 being offered as a compromise. The Bill has sparked controversy over potential human rights challenges concerning the proposed valuation reforms. There will no doubt be fierce challenges over the proposed squeeze on landlords’ costs. The pendulum is certainly moving in leaseholders’ favour. But is this a move too far?
The article is available online from New Law Journal by subscription only.
Shabnam Ali-Khan is in the property law and conveyancing team, specialising in lease extension and enfranchisement matters, primarily under the Leasehold Reform Housing and Urban Development Act 1993 working with a variety of clients ranging from high-net-worth individuals and companies to individual leaseholders and investor landlords.
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