LEASEHOLD REFORM BECOMES LAW
On Friday 24th May the Leasehold and Reform Bill become law. Rushed through partly due to the imminent elections on the 4th July. Whilst it is far from perfect, there has been an update to some laws
In summary:
The Act will make it easier and cheaper for leaseholders to buy their freehold, increase standard lease extension terms to 990 years for houses and flats, and provide greater transparency over service charges.
It will further ban the sale of new leasehold houses other than in exceptional circumstances, end excessive buildings insurance commissions for freeholders and managing agents, and scrap the requirement for a new leaseholder to have owned their house or flat for two years before they can buy or extend their lease.
The new powers also grant freehold homeowners on private and mixed tenure estates the same rights of redress as leaseholders, and equivalent rights to transparency over their estate charges, and help more leaseholders take over the management of their property if they want to.
There is currently no cap on ground rents
You can read the full Government release:
Darren Bennett
Managing Director
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