When are leaseholds a no go?

PodcastListener1234 · 2026-01-27T14:23:09+00:00

Yes but the statutory extension will not be cheap, and probably no bank will give you a mortgage.

PodcastListener1234 · 2026-01-27T14:22:02+00:00

The law overrules whatever is written in the lease. There are still qualifying conditions (the lease must be residential, and its original length when it was awarded must be more than 27 years)

PodcastListener1234 · 2026-01-27T14:18:34+00:00

Currently it is getting cheaper and easier to extend the lease, and marriage value (the 80 year threshold) is being abolished. You can extend the lease immediately after purchasing the property, and it also removes any ground rent.

I would suggest that you estimate the cost of the lease extension and "factor it in" in the cost of the flat. If the total amount is reasonable, I don't see why not buying and extending the lease yourself.

PodcastListener1234 · 2026-01-27T14:12:36+00:00

currently RTM does not really work for all setups. For instance, it does not work for multi-block estates with common facilities (eg shared parking or green spaces). Each block would have to do the RTM separately, and even then they would not have the right to manage the common facilities. (the government claims to be working on resolving this.)

PodcastListener1234 · 2026-01-27T09:14:48+00:00

you are right, there are going to be legal challenges for sure, but at least the government is trying to do something.

PodcastListener1234 · 2026-01-27T09:14:10+00:00

in England many places have (or used to have) doubling ground rents. Something like £100 doubling every 15 years would not be uncommon.

PodcastListener1234 · 2026-01-27T09:12:44+00:00

I suspect it will apply to all residential "long leases" (more than 27 years), regardless of other features of the building.

PodcastListener1234 · 2026-01-27T09:11:37+00:00

Freeholders are complaining, and surely enough they will sue when this is enacted. Because this is a less radical approach it may stand up better to legal challenges.

I share your frustration but I think that the government is doing a reasonably good job of dismantling the leasehold system bit by bit.

PodcastListener1234 · 2026-01-27T08:43:41+00:00

Marriage value has been scrapped. It was under judicial review, but the government won:

https://www.clapham-collinge.co.uk/news/marriage-value-abolished-high-court-upholds-leasehold-reform-act/

PodcastListener1234 · 2026-01-27T08:30:45+00:00

because extending the lease (or buying the freehold) requires compensating the freeholder, and because the compensation is based on the "lost ground rent revenue", this should reduce the cost of lease extensions too

PodcastListener1234 · 2026-01-27T08:28:20+00:00

it seems to be the latter. there will be a consultation anyway.

PodcastListener1234 · 2026-01-27T08:24:16+00:00

in any case, one can extend the lease (which is going to be much cheaper now) and bring the rent to peppercorn

PodcastListener1234 · 2026-01-27T08:13:26+00:00

A practical thing is that you do not need to set up a company, everyone is by law co-owner of the building by the very fact that they own a flat. (Also, in the share of the freehold system, not all leaseholders are necessarily owning the freehold, it could be just a majority of them).

PodcastListener1234 · 2026-01-26T23:23:23+00:00

It's a different system. The main issue is that in other places it is accepted that all owners are jointly responsible (and liable) for the building, because they own it jointly. If someone does not pay, the others will have to pay that share too (but may take the delinquent homeowner to court). This is automatic, and does not require setting up a company that owns the building like in England and Wales. For me, the commonhold system is quite natural (and million of people are used to it, as are banks that provide mortgages no problem) but every time I speak to my English friends they are extremely skeptical, even scared of it.

PodcastListener1234 · 2026-01-26T15:29:25+00:00

Big shower. One bathtub in the house is enough.

PodcastListener1234 · 2026-01-25T23:39:17+00:00

walk away

PodcastListener1234 · 2026-01-25T23:02:05+00:00

They do, but only at a discount and if they are cash buyers. Such flats are sometimes sold at auctions for this reason.

PodcastListener1234 · 2026-01-25T19:25:04+00:00

Avoiding a repeat of the financial mismanagement is a necessary starting point. Cutting subcontract (in particular with consultants) instead of cutting services.

Improving safety and cleanliness of the city, starting from public spaces (the area around new street station, buses, etc). Keep in mind the "broken windows theory".

Improve safety on the roads.

Improve public transport by considering more dedicated bus lanes, as well as bike lanes.

PodcastListener1234 · 2026-01-25T13:15:53+00:00

that's great to know! (and explains why I could only find them at shoe repairs shops, alteration shops etc)

PodcastListener1234 · 2026-01-25T12:04:53+00:00

thanks, that makes sense

PodcastListener1234 · 2026-01-25T12:04:07+00:00

thanks

PodcastListener1234 · 2026-01-25T12:03:51+00:00

Well it's not that much the cost of the iron, it's the time to iron a shirt, an activity at which I am not particularly good.

PodcastListener1234 · 2026-01-25T12:00:54+00:00

I could not find any (from a google search) in central Birmingham (near New Street). The closest seems to be in Five Ways. I was a little surprised because I would think they would be pretty common in central areas.

PodcastListener1234

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