The History of Leasehold Property

0000 Uhis lease The History of LEASEHOLD PROPERTY U nine hundred and sixty two 3E! CPOUbone regietered office ie at 13 U the County of London (hereinaft expression shall where the context persona for the time being entitle xyeo tant on the term hereby ereat SOLP JOSEP of London Vine Shipper (hereiafte of Mumber 25 o expression ahall where the oontext in title) of the other part TI2NESSETH as foll 1. IN considerntion of the mum o paid by the Lesnee to the Landlord In feudal law, villeins and serfs were allowed to work a plot of land for a fixed period of time (farming or providing other trade services), in exchange for a portion of their income from the land or in the form of providing agricultural/trade services for those higher up the social hierarchy. Land owners could retain ownership of the land whilst regularly profiting from the land. MEDIEVAL TIMES It was almost impossible to climb the property ladder. Before, land worked in a pyramid-like system where sub-tenants and sub- sub-tenants could exist, each providing the person above them with a portion of their income. This was known as subinfeudation. In the 1200s, this was abolished. 1200s Land owners issued to their sub- tenants land rights to certain estates on different terms. e.g. the sub-tenant can enjoy the products of the land for life, but then the land ownership will revert. Or pay a regular fee and the land could be inherited by heirs. IN MODERN AGE 1900s 90% of all housing in Britain was privately rented. When wages started to increase, landlords were able to arbitrarily raise rent and exploit their 1920s This was the beginning of the modern leasehold property system. Long leases allowed freeholders to bring in steady income for long periods whilst still retaining ownership of the land. tenants. 1950s There was a significant increase in the construction of flats (as it was far more economical to build upwards rather than outwards), and therefore leasehold property ownership. 1960s Many elderly tenants found themselves losing their home due to leasehold expiration. Legislations were introduced which allowed you to extend a house's lease by 90 years. 1990s Leasehold flat owners were given the ability to extend their lease by an additional 90 years too. Something which legsehold house owners were able to do since the 1960s. Infographic by SHBURNHAM INSURANCE SERVICES Please credit with a link to www.ashburnham-insurance.co.uk if you wish to use this infographic.