The Scottish Government will bring forward legislation to convert ultra-long leases to ownership implementing a report by the Scottish Law Commission (SLC). A Bill was introduced in the last Parliament but due to time pressures, it fell when Parliament was dissolved for the election. The ultra-long leases to be covered by the Bill were let for more than 175 years and have more than 100 years left to run.
The legislation forms part of a programme of property law reform carried out by the SLC, including the abolition of feudal tenure which was enacted by the Abolition of Feudal Tenure etc. (Scotland) Act 2000.
The Scottish Government estimates that there are around 9,000 ultra-long leases in Scotland. They were often granted by landed estates and so tend to be concentrated in specific parts of the country. The SLC report indicates that legal practitioners are aware of ultra-long leases in Alva, Ardrossan, Saltcoats, Stevenston and Wishaw.
Converting ultra-long leases to ownership will simplify an area of property law.
Key proposals of the Bill will include:
- Converting ultra-long leases to ownership
- Allowing some leasehold conditions to become real burdens in the title deeds
- Provision for compensation and additional payments to be paid to landlords
- Allowing landlords to preserve sporting rights in relation to game and fishing
- Allowing tenants to opt out of converting to ownership, if they wish