Multi-owned Housing Flashcards
Mortgages
- equity of redemption = rights of mortgagor minus the rights of the mortgage
- s.85 LPA 1925 = how to create a mortgage
- LRA 2002 = s.4(1)(g) - unregistered land with a mortgage triggers registration + s.51 - charge with a deed is a legal mortgage
- legal mortgage requirements:
1. legal estate
2. created by a deed = s.52(1) + s.85 (1) LPA 1925
3. completed by registration = s.27 (2)(f)
= if no, then an equitabel charge of a legal estate, so long that s.2(1) LPMPA 1989 requirements are met OR equitabel chrage over an equitabel estate, so long that it is signed in writing, per s.53(1)(a)LPA 1925 - the courts can postpone an order for possession
- powers of sale can be express or implied [s.101(1)(i)LPA 1925]
Condominium vs. long leases
Multi-owned housing is based on sharing = inter-dependent
Condominium = product of 1950s statutory law - ‘dualistic’ = individual ownership of flats vs. collective owenrship of shared facilities/common parts
Long leases =
- freeholder = landlord - they own the title of the building and the shared areas
- leaseholder = tenant - they pay the premiu and the low ground rent
types of long leases
999 years =
- freeholders have little value vs. they get paid a high premium
- leaseholder’s interest has high value vs. ground rent is subject to doubling
99 years =
- greater value of freeholder’s interest vs. low ground rent but still a substantial premium
- leaseholders still get a high value interest vs. wasting asset problem
long leaseholder system of flat ownership
- freeholder is a company, which is made up of leaseholders, so they collectively make decisions
- leaseholders have long leases granted by the company, so they are their own landlord
advantages over condominium titles: - land is 3D
- flying freehold is possible
Disavantages - English law is reluctant to admit flying freehold
- complixities in horizontal land
= statutory intervention to tackle these issues = commonhold and leasehold reform act 2002
enfranchisement rights in long leaseholds
- leaseholders can extend their leaseholds or buy as freehold
- LRA 1967 = doesn’t apply to flat leases
- The Leasehold Reform, Housing and Urban Development Act 1993 = applies to long leases over 21 years [s.3(1)]
- buildings must contain two or more flats
- given to no less than half of flats
- building must be more than 25% residential
- s. 23 = freeholder can give counter-notice to prevent enfranchisement
right to manage in long leaseholds
- introduced by s.71-113 commonhold and leasehold reform act 2002 = the right to manage is hed by the company made up of leaseholders
- leaseholders are responsible for management
- same requirements for enfranchisement = s.72
- must give notice to invite leaseholders to join = s.78
- must give notice to acquire the right to freehold = s.79
- there is a right to obtain information = s.82
- they also have the right to access teh premises = s.83
- freeholder manger can serve counter notice = s.84
- once acquired, they take over management of landlord to the qualifying tenants = s.96
- but they have no right to forfiture/re-entry under Landlord and Tenats Act 1985, but they have the obligations of a landlord
regulation of service charges in long leaseholds
- landlord and tenant act 1985 s.18 - 30
- definition s.18(1)
- relevant costs = s.18 (2)
- reasonableness = s.19 [e.g. Grenfell Tower Fire]
- time limit on demand of service charnges = s.20 (B)(1)
- deand must be accompanied by summary of rights and obligations of tenants = s.21B
Abolition of ground rent
- however, only for new leases
- s.3leasehold reform [ground rent] act 2022
commonhold [vs. long leaseholds]
there are issue swith the long leasehold system of flat ownership
1. abused by freeholders
2. systemis problems, such as those argued by Hopkins and Nellor =
- wasting asset problem
- limited autonomy
- control as owners
creation of commonhold
- created out of a freehold registered estate and it must be itself registered [s.2(3)]
- at least two commonhold units [s.11(2)(a)]
- commonhold association must exist = it holds the title to manage = s.35(1) and (2) and s.42
- commonhold community statement = specifies rights/obligations [s.11 (2)(a) and (b) = format and content regulation]
= new developments - s.7 CLRA 2002 + conversion of existing devopments = s.9 CLRA 2002 - unit owners can tranfer = s.15
- tranferee acquires all rights and duties = s.16
- unity owners cannot lease for a premium or for more than 7 years = s.17
