Mayor of London pledges 999-year shared ownership lease to tackle unfair extension costs
Sadiq Khan has stood up for leaseholders in the capital by pledging a 999-year shared ownership lease on homes until 2026.
The mayor has delivered a new expectation that all shared ownership homes built under his new £4bn Affordable Homes Programme are sold on a long-lease basis.
He wants London to lead by example and set the benchmark for higher leaseholder standards across the UK.
Khan said: “Shared ownership properties can be a helpful first rung on the housing ladder for Londoners.
“However, too many leaseholders continue to face unfair extra costs that increase stress for themselves and their families.
“Shared owners deserve to feel secure in their home for as long as they live there without the threat of an unreasonably costly and burdensome leasehold extension process hanging over them.”
The mayor is committed to tackling London’s housing crisis and improving the standards of homes available to residents.
The new expectation, set out in a letter by Deputy Mayor for Housing Tom Copley, urges developers to ensure homes are offered on a long-lease basis.
Sebastian O’Kelly, Director of Leasehold Knowledge Partnership, praised Khan for outlining the new standards.
O’Kelly said: “The point of shared ownership is to give the least well-off a chance to get on the housing ladder.
“It is mortifying to come across cases where shared owners have taken years to staircase up to 100 per cent ownership and then get kicked in the teeth because the lease needs extending, at the cost of another £20,000 to £30,000.
“Wherever possible, all shared ownership leases should be 999 years or no shorter than the headlease owned by the social landlord issuing these subleases.”