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CARL's
aims are:
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The Abolition of Residential Leasehold
CARL seeks to end the deeply flawed, feudal system
of residential leasehold, and see it replaced with the commonhold framework
of ownership. And for house leasesholders to buy their freeholds
at a fair price.
England and Wales are virtually the last outposts in the world of this
antiquated system of home 'ownership' . Leasehold is flawed because it
is a tenancy rather than ownership; it is easily open to abuse by third
party freeholders and managing agents; and is a diminishing asset. Commonhold,
by contrast, is real ownership in perpetuity and with no extermal landlord.
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To Enable
Leaseholders to Transfer to Commonhold, and at a Fair Price
CARL aims for leaseholders to be able to transfer
to commonhold on a simple majority basis, and to end the unfair 'marriage
value' penalty.
While New Labour introduced Commonhold
in 2002, it also made it unattainable for existing leaseholders by requiring
100% of interests in a building (including the freeholder) to agree to transfer
to commonhold. New Labour also retained 'marriage value', which is a compensation
payment paid to the freeholder above the market value of the freehold.
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For All New Developments to be Commonhold
CARL believes that commonhold must a be legal requirement
for new-build flats, and not an option.
New Labour decided not to make it compulsory for new-build flats to
be sold as commonhold units. As leasehold is more lucrative for developers,
they choose leasehold, with the result that hardly any new properties
are commonhold. There are also legal problems in setting up shared-ownership
flats - which the government is encouraging - on a commonhold basis.
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The Ending of Forfeiture
CARL aims to abolish a landlord's right to forfeit
a lease (on grounds of debt or breach of covenant), and replace it with
a landlord's right for compensation from a recalcitrant leaseholder that
is in line with the amount owed or damage done.
If a landlord can prove a small debt or breach of the terms of the
lease, he can regain the lease to his flat, and the leaseholder loses
everything. This situation is open to abuse by unscrupulous landlords.
The lease is also the only contract in English law that allows one party
(the landlord) to obtain from another party (the lessee) far more in compensation
than the debt owed.
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The Statutory
Regulation of Managing Agents
CARL sees the regulation of managing agents as a
necessary step to help protect leaseholders - and commonholders - from irresponsible
and unprofessional operators, and to help raise the standard and professionalism
of the industry.
Managing agents are in a powerful position
controlling large service charge accounts, deciding or influencing how and
where that money is spent, and generally being pivotal in how a building
is run. Some are just the puppet companies of irresponsible landlords. Yet
despite agents being in such a strong postition to exploiit leaseholders,
they operate in an unregulated and unchecked market.
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