Government announces reforms to leasehold housing

[Mark Rocks 53]

Big news today, as Housing Secretary Robert Jenrick has revealed that millions of leaseholders will be given the right to extend their lease by a maximum term of 990 years at zero ground rent; https://www.mortgageintroducer.com/government-make-reforms-leasehold-housing/

As part of the biggest reforms to English property law in 40 years, today's changes mean that any leaseholder who chooses to extend their lease on their home will no longer pay any ground rent to the freeholder, enabling those who want to fully own their home to be able to do so without “cumbersome bureaucracy and additional, unnecessary and unfair expenses”.

This change could save some homeowners thousands, if not tens of thousands. Are you happy with this announcement?

[kari paavola 0]

hi ! Could some advice me on the "marriage value" thing. I read the Government statement on this, but not sure if I got this right. They are prohibiting  the marriage value part on short leases?? yes?? Mine has 64y left, and obviously this would be huge for me and many others in my situation. Would love some feedback. Thanks !! 

 

[wookash 9]

Sure its a big news and its a great topic for a podcast . I wonder when these reforms will become a reality since no timeframe is revealed yet.

Here you can find a full brochure:

https://s3-eu-west-2.amazonaws.com/lawcom-prod-storage-11jsxou24uy7q/uploads/2020/07/Summary-The-Future-of-Home-Ownership-final-N2.pdf

[bhupinder_bhatti 1]

The Government has announced that it will legislate to bring into effect the following.

1.     Leaseholders of both houses and flats will now be able to extend their lease to a new standard 990 years (maximum) with a zero ground rent.

2.     A cap will also this article sets be introduced on the ground rent payable when a leaseholder chooses to either extend their lease or become the freeholder.

3.     An online calculator will be introduced so that leaseholders can more easily determine how much it will cost them to extend their lease (or purchase their freehold).

4.     Abolition of marriage value.

5.     Leaseholders will have the right to agree to a restriction on future development of their property to avoid paying development value.

6.     Ground rents will be reduced to zero for all new retirement properties to ‘protect the elderly’.