There are significant changes coming to property law in England and Wales very soon.
These new laws will affect the way that freeholders charge ground rent for leaseholders on a property, as well as the rights that leaseholders have to buy freeholds.
In total, these new laws will affect around 4.3 million homes across England and Wales.
In this article, we’ll go over the basics of the new package of laws, when they’ll come into action and how they might affect you.
Be sure to visit Oasis Living for their fully comprehensive letting agency services and more information about when leasehold reform will become law.
What Are The New Laws?
In a nutshell, the new leasehold laws will give leaseholders more rights and make the process of owning a home fairer and easier.
As part of the new laws, house and apartment leaseholders will be able to:
- Extend their leaseholds up to 990 years without having to pay any ground rent
- Take over the freehold more easily and at cheaper rates
- Do away with so-called leasehold “marriage values”
In addition, these new laws will also extend to cover elderly residents living in care homes.
There is also legislation underway to encourage commonholds, or a group of leaseholders owning the freehold of their building without time restrictions. This applies to both housing estates and blocks of flats.
When Will These Leasehold Reforms Become Law?
As part of the current plans underway, these new leasehold reforms will become law on the 1st of April, 2023.
This follows on from the government’s initial announcement to tackle the issue of houses being sold as leaseholds and unfair ground rents on lease agreements from December 2017.
As of January 2022, the investigation carried out by the Law Commission on leasehold reforms is complete and the relevant reviews and investigations into the reforms have been published for landlords, leaseholders and freeholders to see.
How Will The New Laws Affect Me?
If you’re a leaseholder, the new reforms are good news.
The new laws will do away with overly long, complicated and unfair contract agreements. It will also make it much easier for leaseholders to take over management of shared properties in a new scheme called Right to Manage.
Meanwhile, freeholders will stand to lose income from the money paid in ground rents for their properties.
In particular, housing developers, who make a lot of money by selling leasehold contracts, will lose out massively.
In response to this, many housing developers have already promised to cease the sale of flats as leasehold contracts.
Contracts with built-in increases in ground rents will also become a thing of the past, which is another win for leaseholders.
Want to Know More About When Leasehold Reform Will Become Law?
The new leasehold reforms will become law very soon, and it’s best to be prepared for the changes that will be put in place.
Whether you’re a tenant or a landlord, it’s wise to arm yourself with as much knowledge as possible so you can make sure you’re not caught out by the changes.
Oasis Living are expert letting agents who are committed to making sure your rental experience goes as smoothly as possible.
Contact them today to find out what they can do for you and your property.
Meta title: When Will Leasehold Reform Become Law in the UK?
Meta description: There are big changes coming to how leasehold work in the UK. Read on to find out more.