VERBATIM LAW PAGES
This is a brief page to update and keep our clients informed of changes in the law and how this affects the way we deliver our services to you.
COMMONHOLD AND LEASEHOLD REFORM ACT 2002
Under this Act the majority of short leases are now extendable by right for tenants who have owned their property for two years.
The Act also extends the entitlement to companies, non residential individuals and Trusts .
The Act introduces changes that generally benefits the tenants. An example of this is that it gives tenants the right to manage their blocks of flats under statute. The tenants can set up a Right to Management Company (RTM company) and the Landlord cannot object unless the type of building is one that does not come under the qualifications set out in the Act.
This is a new form of tenure or way of holding your flat. This system has been around in other countries for many years e.g in the USA it is called Condominium and in Australia the Strata System. It is based on the Leaseholder holding or owning their flat and the whole building in the same way as owning the freehold, so there is no leasehold term e.g 99 years. You therefore own the property in perpetuity.
STAMP DUTY LAND TAX (SDLT)
The Finance Act 2003 has made serious changes to stamp duty and these changes have had a hugh impact on all property transactions. The difference between the old stamp duty regime and this new one is that stamp duty use to be payable on the deed or document (instrument) transferring the property, now it is tax on the land itself . The implications are therefore now wider, so completing your purchase abroad and the tax residence of the buyer is now irrelevant.