Long lease tenants should be owners: Commission
21 Dec 06
Law reform body wants conversion as follow-up to feudal reform
Tenants holding property under extremely long leases should have their rights converted to ownership, according to the Scottish Law Commission.
In its Report on Conversion of Long Leases (no 204) published today, the Commission says its recommendations would be an appropriate follow-up to the abolition of feudal tenure two years ago.
The leases the Commission has in mind are those granted for terms of more than 175 years (the maximum permitted under feudal reform), with more than 100 years still to run. According to the Commission, a significant number of properties are held on terms of up to 999 years, a holding which amounts to ownership in all but name.
However it believes the legal structure in such cases is unnecessarily complex, and conditions of the lease may allow the landlord an inappropriate degree of control for what is probably a very small annual payment - yet in some cases the lease could be terminated for breach of the terms.
The Commission recommends an automatic conversion to full ownership, similar to feudal abolition day, with tenants having the right to opt out and the landlord able to preserve conditions that benefit neighbouring properties and receive compensation calculated as a multiplier of the rental.
The report can be viewed on the Commission's website www.scotlawcom.gov.uk .