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Reply to Andrew Finkel - Going forward, I don't think there would have to be a remote freeholder to enforce communal obligations, it is a hangover issue with English law. A residents association or more likely their company could be given the same powers as the remote freeholder, where each flat owner on purchase of their flat is obliged to pay towards communal costs. This obligation would pass to any new owner. Each flat owner has a share in the company, which would also pass to a new owner. If none of the flat owners are interested or capable of organising things, then the only thing their company would have to do is appoint a competent managing agent, who would ensure the building is maintained properly and bill the residents for service charges. It would be easy to appoint a new managing agent if necessary. New flats would have to be sold where the flat owners have their own company from the outset, the developer could offer a list of managing agents to be used, including themselves, or the owners manage things themselves. Everywhere else manages quite well without leasehold, apart from England and Wales, we should look at best practice elsewhere, rather than just say it is too difficult and complicated to get rid of leasehold.
To be honest, I have no great objection to fair long leases, very small ground rents which cannot increase, and low cost, easy lease extensions. What I do object to is using leasehold tenure as a money making racket, through excessive cost for lease extensions, enfranchisement, or rapidly rising ground rents. I fear the present review may just bolt on more complexity to the current rotting structure, and allow some to continue to make a good living by abusing leaseholders. One third of the residents in our building take no interest in it, this is not unusual, and I think part of the legal review needs to look at ways to motivate people, and make it easier for people to control their own destiny. The complexity of the current system puts people off getting involved, and enables abuses to happen.