Commentary

3 Problems with the leasehold ownership of flats

COMMONHOLD vol 8(1)
| Commentary

3 Problems with the leasehold ownership of flats

| Commentary

3 Problems with the leasehold ownership of flats

In law, the interest of a third party landlord of a block of flats and the interest of the lessees of the individual flats do not necessarily coincide; they may coincide in practice where the landlord is a body owned by some or all of the lessees.

The main problems arising out of the leasehold ownership of flats have been identified as:

  1. 3.1

        Wasting asset: The interest of the lessee is a wasting asset, and will eventually disappear, so that the lessee’s interest will, in effect, return to the ownership of the landlord. This issue is perhaps more illusory than real, in that leases may be granted for, say, 999 years (no doubt longer than the physical life of the asset leased), and legislation has given to lessees of flats extensive rights to be granted an extended lease and to acquire the

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