Mayor Of London Outlines Plans For Standard 999-year Lease Terms On New Affordable Housing
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The Mayor of London, Sadiq Khan, has outlined plans to sell shared ownership homes delivered as part of his new Affordable Housing Programme on a standard 999-year lease term.
The new expectation, which was set out in a letter written by Deputy Mayor for Housing Tom Copley, will apply to all shared ownership homes built through the Affordable Housing Programme. In addition, the letter states that all other housing developers should offer homes on a similar long-lease basis where it is possible to do so.
The value of leasehold properties depreciates when there are 80 years or less remaining on the term of the lease.
Khan stated that it was the intention that an initial long-lease term would allow purchasers to buy a property without incurring additional costs pursuing a lease extension to preserve the value of their property.
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Tom Warrender
Partner
Tom is a Solicitor and Partner with 14 years + experience advising clients in relation to commercial property matters. A Legal 500 recognised lawyer, Tom is a member of SHLA and CRELA, sits on our Board of Management & Heads our Social Housing Team.