Proposed changes to Leasehold Property
Many families that remain stuck in leasehold homes now start to see the light at the end of the tunnel as government advisers laid out a raft of proposals which would make it easier for leaseholders to either purchase their freehold, extend their lease or eliminate their ground rents.
A few of the many proposals laid out include:-
- Giving homeowners the right to a lease extension for a term if 990 years, in place of shorter extensions that are given of 90 or 50 years .
- It has also been recommended that there should be no on-going ground rent under this extended lease, and landlords shouldn’t be able to use the lease extension process to impose new obligations.
- A new right for leaseholders with very long leases to buy out the ground rent under their lease without also having to extend the length of their lease.
- It has also called for a rules change so that leaseholders can extend their lease or buy their freehold immediately after buying their home rather than having to wait two years as they have to now.
- That the law is changed so that the current requirement for leaseholders to pay their landlords cost of dealing with an enfranchisement claim should be eliminated or controlled.
- The law commission has also proposed a massive expansion to the commonhold system, which would give flat owners an option other than leasehold. It allows the residents of a building to own the freehold of their individual flat and to manage the shared areas through a company. The law commission further suggest to allow the leaseholders to unilaterally decide to convert to commonhold without the approval of any other parties.
It is thought these changes will make a real difference by giving leaseholders greater control over their homes, offering a cheaper and easier route out of leasehold properties.
How can DWS Legal help?
At DWS Legal, we understand that buying a property can be a daunting experience,
which is why we treat all cases with the diligence, attention and care that they deserve,
through staff that are experts in all aspects of the buying process.
What should I do next?
For an instant quote at a competitive price, please contact a member of our Property Team on:
T: 0116 2999 1999 Option 0
Leave a Reply