A recent update from the government you may have seen in the news is about leasehold reform. Here are a few potential changes following the announcement, which relate to leasehold property :
- Lease extensions – to extend the term of a lease when following the statutory procedure, the additional term will increase from an automatic 90 years to 990 years.
- Leasehold houses – ban on creating leasehold houses. Although leasehold houses are rare, there are still some leasehold houses, even some particularly new home build developments buyers were granted leasehold houses, but developers will no longer be able to create/sell leasehold houses.
- Ground rent – capping ground rents and rent review increases (ground rent has already been abolished for new build flats since 2022)
- Management information – time limits and fee capping for freeholders/landlords/management companies to provide information when you sell your leasehold property. Often they charge high administration fees and have a long turnaround time.
There are many more updates and the changes await being passed through parliament and become law, but ultimately these changes should make it cheaper and easier for those with leasehold properties.
At Oglethorpe Sturton and Gillibrand, we are experts in leasehold property, lease extensions, flat purchases and sales, especially following the Building Safety Act. We can guide you through selling and buying leasehold property. Contact us today for a quote.
