§ Mr. BellottiTo ask the Secretary of State for the Environment what steps he proposes to take towards allowing leaseholders to buy the freehold of the property which they occupy.
§ Mr. YeoMost leaseholders of houses, but not of flats, already have the right to purchase their freeholds. In addition, a court can order the compulsory acquisition by the leaseholders of flats of the freeholder's interest in certain circumstances where he is failing in his duties. Leaseholders of flats also have the right of first refusal when the freeholder sells his interest. And it is open to leaseholders to seek to purchase the freehold by negotiation.
The possibility of compulsory acquisition of the freehold interest when a commonhold is being established is one of the options considered in the paper on commonhold which the Lord Chancellor has recently issued for consultation. No decision on this has been taken.
§ Mr. BellottiTo ask the Secretary of State for the Environment what steps he proposes to take to enable leaseholders to exercise greater managerial control of the property which they occupy.
§ Mr. YeoUnder the Landlord and Tenant Act 1987 residential leaseholders already have considerable rights in respect of the management of their properties. In most cases, they can apply to the courts for the appointment of a manager if the landlord is not managing the block properly. Leaseholders can wholly control the management of their flats by purchasing the freehold and establishing a managing company. In addition, the Lord Chancellor has issued a consultation paper on proposals for commonhold tenure, which provides an alternative management structure. The consultation period ends on 28 February.