Big changes coming for Freeholders & Leaseholders

Big changes coming for Freeholders & Leaseholders

The 'Leasehold and Freehold Reform Bill' which is being introduced to Parliament today will bring the most significant reforms to the leasehold system in decades. In summary, the Bill aims to:

  • make it easier and cheaper for leaseholders to buy their freehold
  • increase lease extensions to 990 years (from 90 years)
  • provide greater transparency over service charges and buildings insurance
  • make it easier for leaseholders to take over the management of their building
  • ensure freeholders join a redress scheme if they manage their own building
  • remove the requirement to have owned their home for two years before a leaseholder can extend their lease

Further measures, which are being consulted on currently, include an option to cap ground rents for existing leases, a very controversial move and one that is not popular amongst the UK's largest residential Freehold companies.

There is plenty for both Freeholders and Leaseholders to consider and no doubt there will be some unexpected consequences as well as opportunities for the property industry.

It will be interesting to see how the industry adapts to these changes in the coming months and years.


Stephen Day

Senior Developer @ Santander UK | Software Development

10 个月

The Earl of Lytton has tabled amendments to end service charge abuse, prevent insurance assignments and introduce the concept of a Building Trustee to ensure leasehold abuse ends and Commonhold thrives. The building trustee would be appointed for higher-risk buildings and large mixed-use developments. He or she would be an impartial figure whose role would be ensure that the interests, rights, responsibilities of the landlord (if any) and leaseholders are balanced and, more importantly that the building is properly maintained and the service charge provides value for money. In this way, the concerns raised in relation to leaseholder management of larger mixed use estates can be mitigated. In the event of insolvency of the landlord, the building trustee would step in to ensure the ongoing management of the building. Provision is made in the relevant amendment to prevent the termination of service contracts or insurance policies if a landlord becomes insolvent. More here: https://buildingsafetyscheme.org/trusthold-and-service-charge-amendments-tabled/

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Colin Horton

B&C Power List 2025 | Property Week RESI Trailblazer 2024 | Multi Award Winning Valuer | Expert Witness | Keynote speaker | CH4 Selling Super Houses | Owner of the fastest growing surveying firm in the UK.

1 年

Always there if you need us guys! Catch up soon!

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