ALEP said commonhold reform will depend on realistic timetables, expectation management and clearer valuation arrangements
The Association of Leasehold Enfranchisement Practitioners (ALEP) has welcomed parliamentary backing for the draft Commonhold and Leasehold Reform Bill but said the success of reform will depend on clearer implementation planning, better public understanding and workable rules governing conversion and valuation.
Responding to the House of Commons Housing, Communities and Local Government Committee’s report on the draft Bill, ALEP said the proposals represented an important opportunity to reshape home ownership and strengthen homeowners’ control over residential buildings.
However, the organisation warned that political commitments to abolish the leasehold system had created uncertainty among some leaseholders about the likely speed and reach of reform.
ALEP stressed that, even if enacted, the legislation would not bring an immediate end to leasehold ownership. Some existing leaseholders may face obstacles to short-term conversion, commonhold requirements for new flats could still be years away, and certain ownership arrangements including shared ownership flats are expected to remain within permitted lease structures. Existing developments may also need to complete enfranchisement processes before conversion becomes possible.
Mark Chick, ALEP director and senior partner at Bishop & Sewell, said the reforms should be viewed as a long-term transition rather than an immediate replacement for leasehold.
“The changes certainly will not be quick. In practice, it may be several years before commonhold is mandated and, across parts of the market, it could be closer to a decade before commonhold is fully embedded and widely understood,” he said.
ALEP also highlighted the importance of consumer understanding, arguing that leaseholders would need clearer guidance on both the practical effects of the legislation and the responsibilities associated with commonhold ownership, including governance, collective decision-making and long-term building management.
The organisation drew attention to the Committee’s recommendation that conversion to commonhold should become the default outcome of collective enfranchisement. While supporting efforts to simplify the route away from leasehold, ALEP said the legislation would need to provide clearer answers on how conversion costs and ownership interests should be allocated between participating leaseholders and those joining later.
Giving evidence to the Committee, Chick pointed to unresolved questions surrounding the valuation of interests such as development value where non-consenting leaseholders subsequently seek to acquire a commonhold interest. Without greater clarity, he warned, conversion could be discouraged if participating leaseholders bear the costs of acquiring the freehold while later entrants avoid contributing proportionately.
ALEP also called for a clearer government timetable covering both the proposed Bill and remaining measures under the Leasehold and Freehold Reform Act.
“Leasehold reform now has strong political momentum,” Chick said. “The task for Government is to turn that momentum into legislation that practitioners can apply, leaseholders can understand and the market can trust.”