Leasehold Residential Property (Hansard, 18 May 2000)

§ Shona McIsaac
To ask the Secretary of State for the Environment, Transport and the Regions how many leasehold residential properties there are in each electoral ward in Cleethorpes constituency. [122351]

§ Mr. Mullin
The Survey of English Housing provides estimates of the number of leasehold dwellings in England. The Survey of English Housing cannot produce estimates for parliamentary constituencies.

§ Shona McIsaac
To ask the Secretary of State for the Environment, Transport and the Regions what statutory provisions govern the rights of family members to purchase the freehold of a leasehold residential property they have inherited. [122352]

§ Mr. Mullin
Section 7 of the Leasehold Reform Act 1967 allows certain family members who were resident in a leasehold house at the time of the deceased's death to satisfy the residence test even where they would not normally do so. They must still have resided in the premises for at least three years in the last ten and meet the other conditions that normally apply. We are considering whether to extend these provisions as part of our leasehold reform package.
For flats, only half the group buying the freehold (enfranchising) need to satisfy the residence test (we propose to abolish the residence test as it applies to collective enfranchisement). Subsection 6(3)(b) of the Leasehold Reform, Housing and Urban Development Act 1993 allows the residence test to be satisfied even where the tenant's previous occupation of the flat was not by right of the lease. Therefore, an individual who inherits a long lease on a flat should be able to participate in enfranchisement in the usual way. Subsection 14(5) deals with the possibility that a participating tenant might die during the enfranchisement process. Section 16 makes provision in the event of the death of the nominee purchaser.

§ Shona McIsaac
To ask the Secretary of State for the Environment, Transport and the Regions what guidelines his Department has issued on setting a price for the purchase of the freehold of leasehold residential properties. [122350]

§ Mr. Mullin
There is no set formula for deciding on the price of a freehold. The Leasehold Reform Act 1967 (as amended) sets out the basic principles to be used when deciding how much should be paid for the freehold of a house. The Leasehold Reform, Housing and Urban Development Act 1993 makes similar provision for flats.
Guidance on this point is included in our booklets "Leasehold flats: your right to buy the freehold of your building or renew your lease" and "Leasehold houses: your right to buy the freehold of your house or renew your lease". Both are available free of charge from DETR Free Literature, PO Box 236, Wetherby, LS23 7NB. This guidance is for information only—it has no legal authority.