On Tuesday 28th November the government introduced reforms to the leasehold and freehold laws. These are meant to benefit leaseholders when they need to increase the extension to leases, and reduce the costs of the legal fees for such changes. The changes include altering the standard lease extension term to 990 years for houses and flats. Currently the standard renewal is 50 years for houses and 90 years for flats. As mentioned in the announcement this will mean that leaseholders can “enjoy secure ownership without the hassle and expense of future lease extensions”

 Packaged in with this are powers to help leaseholders to take over the management of their property, rather than being saddled with the freeholders management choice. Further reforms have been promised, so that it becomes easier and cheaper for people selling their homes, to get the information necessary to sell a leasehold home. Changes are also made for tenants in mixed-use blocks of flats, where the commercial space is greater than 25% of the total floor space. Currently they are not able to take over the management of the building because of this percentage, but the new law changes this to 50%, giving the possibility for leaseholders to access a “Right to Manage”. Ground rent is another area that is being looked at, with a consultation period with the aim to cap ground rent increases for existing leases, so that leaseholders are protected against increases for no additional service in return.

The Housing Secretary Michael Gove announced “People work hard to own a home. But for far too long, too many have been denied the full benefits of ownership through the unfair and outdated leasehold system. That’s why liberating leaseholders, forms a vital part of the Government’s Long-Term Plan for Housing. So today marks a landmark moment for millions of leaseholders across the country, as we unveil laws to deliver significant new rights and protections, slash unfair costs, and crack down on exploitation. The Bill addresses one of the longest-term challenges that the country faces – fairness in the housing market. The measures in the Bill will put the country on the right path for the future, by addressing the historic imbalances between leaseholder and freeholder, to give homeowners a fairer deal; greater protections; and more rights. The Bill will strengthen existing, and introduce new, consumer rights for homeowners”