Will leaseholders coming to the end of their lease be in a worse position as a result of the difference between the £100k used for assured tenancies and £25k used to establish security of tenure?
The position of such leaseholders remains the same since the existing formula which determines whether they have the benefit of the security of tenure provisions within the Local Government and Housing Act 1989 remains in place. However in respect of such leaseholders it should be remembered that legislation has made it easier for leaseholders to extend their lease or buy their freehold which will enable them to take a greater stake in their home and these rights are increasingly being exercised. We would then not expect there to be many leaseholders who would be in the position of finding that their leases have reached the end of their term and therefore need to rely on this particular legislation. Security of tenure where a long lease comes to an end provides important protection for those leaseholders who will have had a significant stake in the property having paid a premium for the lease on which a ‘low’ rent was payable. We wish to ensure that security continues.
