Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Spicerhaart Calls for Leasehold Reform as Sales Slow
Spicerhaart Corporate Sales has called on the next UK government to make leasehold reform a priority, highlighting ongoing issues with delayed and problematic sales of leasehold properties. The appeal comes as Andy Burnham is expected to become prime minister within days.
Spicerhaart Corporate Sales manages property portfolios and distressed assets for major UK banks, building societies, and lenders. According to the company, leasehold properties—most of which are apartments—now account for more than half (54%) of the stock it manages. The company reports that the current leasehold system is making it increasingly difficult to achieve timely sales.
Spicerhaart identified several barriers to leasehold transactions, including shorter leases, rising costs of lease extensions, increasing ground rents and service charges, building safety requirements, and delays in obtaining essential management information from freeholders or management companies. The company stated that as leases become shorter, properties become less attractive to buyers and mortgage lenders, and the cost of extending a lease can rise significantly.
According to Spicerhaart, leasehold properties remain in possession for an average of more than 250 days—over 100 days longer than freehold homes—and typically take around eight weeks longer to complete once an offer has been accepted. The company noted that the problem is particularly prevalent in the North of England, and that delays and failed sales are resulting in more leasehold properties being sold at auction.
While Spicerhaart acknowledged that recent leasehold legislation had been a positive step, it argued that further reform is needed to address longstanding issues affecting leaseholders and lenders.
Source: Property Industry Eye