Governments pledge to reform Leaseholders’ rights
Under the current law, for many decades, millions of leasehold homeowners have been tied into hidden costs and strict clauses by freeholders. Costs include years of escalating ground rents, uncapped service charges, and extortionate prices to extend leases, ultimately leading to properties becoming unsellable. Now leaseholders’ rights are set to change.
Allowing leaseholders the right to extend their lease
An announcement this month brings good news. The Government is pledging to act after recommendations by the Law Commission from last year. Housing Secretary Robert Jenrick said, “Across the country, people are struggling to realise the dream of owning their own home but find the reality of being a leaseholder far too bureaucratic, burdensome and expensive.”
The new reform will allow leaseholders the right to extend their lease by 990 years, with zero ground rent. Currently leaseholders of houses can only extend their lease up to 50 years once and continue paying ground rent. Flat owners can extend leases multiple times with a peppercorn ground rent rate for 90 years. Additionally, they are often faced with extortionate charges by the freeholder.
Leaseholders rights to change over next two years
Now there is hope for millions of leaseholders that could save over tens of thousands of pounds. These changes are due to be enforced within next two years, these measures will come as part of the biggest reforms to English property law for forty years.
If you are a leaseholder and these changes affect you, our friendly and professional residential department can provide advice on all matters relating to lease extensions and buying leasehold properties. Our team has over collectively over 60 years’ experience is residential conveyancing work. We have three conveyancers who are assisted by a very experienced and able support team. They are all supervised by Sharon Lawrence, Partner, and property solicitor.
For further details of our services, please call a member of our Residential Conveyancing Team on 01543 420000.
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