3 ms·

Yeah I had to read a the headline a couple of times to be sure I understood it correctly. It's a little unbelievable to me that they'd actually do something ben

by smcl 3y ago

Yeah I had to read a the headline a couple of times to be sure I understood it correctly. It's a little unbelievable to me that they'd actually do something beneficial like this, and I'm a little suspicious ...

chris12321 3y ago
They've only just abandoned their manifesto commitment to leasehold reform last week. https://www.theguardian.com/money/2023/may/10/plans-abolish-feudal-leasehold-system-england-wales https://www.theguardian.com/money/2023/may/10/plans-abolish-...
tialaramex 3y ago
These are obviously necessary reforms, like when they reformed Ground Rent† The argument for the Tories to do it is that if they do it then politically that looks better, and they can control exactly how it's done, choosing alternatives that the opposition wouldn't have but which are nonetheless acceptable, normal politics. Of course just because it makes sense for the party strategically doesn't mean individual members who stand to lose out won't fight it. † Almost all homes that don't occupy their own distinct footprint (e.g. flats/ apartments) and some which do are owned as "Leasehold" which means that you don't own the land in perpetuity, instead you own a "Long Lease" (e.g. 125 years) which can be extended for a fee, and entitles you to occupy the property. Because it's a Lease it can require rent, traditionally such Long Leases specified a rent of "One peppercorn" (if you've never seen it, black pepper is made from tiny dried berries, such a peppercorn is technically something of value, therefore it constitutes a valid rental payment) for the ground - "ground rent". But in recent years new long leases had begun to make the rent real money - I pay £250 per year for example, which isn't much money for a home but it's a lot more than one peppercorn. This made the freehold ownership (and thus right to collect these ground rents) into a valuable investment for offshore property companies. Tory legislation made it illegal for new Long Leases, including extensions to existing ones, to set rent above one peppercorn, and additionally required that freeholders not demand the actual peppercorns or charge any sort of "fees" (such as to collect and store the peppercorns) to the leaseholder on the rationale that in fact obviously nobody wants peppercorns, they're just a legal device, knock it off. However, the Tories did not reform existing ground rents. Until your lease is renewed, or you give it up, you have to pay. So this nonsense investment doesn't grow but it also didn't vanish.
- smcl 3y ago
  Oh yeah these things do sound necessary. And additionally the freehold/leasehold system was a shock to me when I first learned of it, it's not a thing north of the border. I'm just surprised that the Conservatives would implement things that at face value are good without also sneaking something sinister in at the same time. I'm maybe just a little too suspicious of them, it's entirely possible they're doing something genuinely good that doesn't have a catch.

by smcl 3y ago

chris12321 3y ago

They've only just abandoned their manifesto commitment to leasehold reform last week. https://www.theguardian.com/money/2023/may/10/plans-abolish-feudal-leasehold-system-england-wales https://www.theguardian.com/money/2023/may/10/plans-abolish-...

tialaramex 3y ago

These are obviously necessary reforms, like when they reformed Ground Rent† The argument for the Tories to do it is that if they do it then politically that looks better, and they can control exactly how it's done, choosing alternatives that the opposition wouldn't have but which are nonetheless acceptable, normal politics. Of course just because it makes sense for the party strategically doesn't mean individual members who stand to lose out won't fight it. † Almost all homes that don't occupy their own distinct footprint (e.g. flats/ apartments) and some which do are owned as "Leasehold" which means that you don't own the land in perpetuity, instead you own a "Long Lease" (e.g. 125 years) which can be extended for a fee, and entitles you to occupy the property. Because it's a Lease it can require rent, traditionally such Long Leases specified a rent of "One peppercorn" (if you've never seen it, black pepper is made from tiny dried berries, such a peppercorn is technically something of value, therefore it constitutes a valid rental payment) for the ground - "ground rent". But in recent years new long leases had begun to make the rent real money - I pay £250 per year for example, which isn't much money for a home but it's a lot more than one peppercorn. This made the freehold ownership (and thus right to collect these ground rents) into a valuable investment for offshore property companies. Tory legislation made it illegal for new Long Leases, including extensions to existing ones, to set rent above one peppercorn, and additionally required that freeholders not demand the actual peppercorns or charge any sort of "fees" (such as to collect and store the peppercorns) to the leaseholder on the rationale that in fact obviously nobody wants peppercorns, they're just a legal device, knock it off. However, the Tories did not reform existing ground rents. Until your lease is renewed, or you give it up, you have to pay. So this nonsense investment doesn't grow but it also didn't vanish.

smcl 3y ago
Oh yeah these things do sound necessary. And additionally the freehold/leasehold system was a shock to me when I first learned of it, it's not a thing north of the border. I'm just surprised that the Conservatives would implement things that at face value are good without also sneaking something sinister in at the same time. I'm maybe just a little too suspicious of them, it's entirely possible they're doing something genuinely good that doesn't have a catch.