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LAW COMMISSION ANNOUNCES 13TH PROGRAMME OF LAW REFORM

The Law Commission has announced a number of projects for its 13th Programme of Law Reform, including the modernisation of trust law and summary procedures in arbitration.

One area of particular interest are proposals to look at unfair terms in residential leasehold.

The precis provided by the Law Commission suggests that broadly it will consider:

  • Whether each time a lease is assigned it should be seen as creating a new contract between landlord and leaseholder.
  • Whether by reason of the above the assignee leaseholder could thereby utilise the law on unfair terms to challenge certain terms in their lease.
  • In particular, it appears the Law Commission will look at assignment fees, fixed service charges, and increasing ground rents.

It remains to be seen how any proposed reforms would operate in tandem with the current statutory regime governing service charges and administration charges.

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