The Government is abolishing prohibitive costs like ‘marriage value’ and set the calculation rates to ensure this is fairer, cheaper and more transparent. The creation of the Commonhold Council should help to reinvigorate commonhold, ensuring homeowners will be able to call their homes their own.”. Millions of leaseholders will be given the right to extend their lease by a maximum term of 990 years at zero ground rent, the Housing Secretary Robert Jenrick has announced today (7 January 2021). Blocks are jointly owned and managed, meaning when someone buys a flat or a house, it is truly theirs and any decisions about its future are theirs too. Professor Nick Hopkins, Commissioner for Property Law at the Law Commission said: “We are pleased to see Government taking its first decisive step towards the implementation of the Law Commission’s recommendations to make enfranchisement cheaper and simpler. On 7th January 2021 the UK Government issued a press release relating to proposed changes in legislation concerning the rights of leaseholders, in particular proposed legislation relating to leasehold enfranchisement (purchasing a freehold interest or extending a lease). Housing Secretary Robert Jenrick unveiled new laws to help leaseholders today Changes will mean almost 4.5m people will be ‘thousands of pounds better off’ Rip-off charges which trap families in unsaleable homes are set to be banished Campaign groups welcome Housing Secretary’s ‘anti rip-off … Legislation will be brought forward in the upcoming session of Parliament, to set future ground rents to zero. Post updated: February 24th, 2021 5 minute read The lease extension process is set to change, although we don’t know when. Only when the changes are enshrined in law will the campaigners and opponents to leasehold be fully relaxed, but the pressure to abolish the system entirely and replace it with commonhold – where people own the property in a complex, but the blocks themselves are jointly-owned and managed – as a viable alternative. Press OK to active them. Last year the Law Commission published reports on leasehold enfranchisement, commonhold, and Right to Manage. 04 May 2021. 30th April 2021. By using our website, you consent to all cookies in accordance with our Cookie Policy. My Lords, five years ago the Leasehold Knowledge Partnership warned the Government of the pending ground rent and leasehold scandals. “These reforms provide fairness for 4.5 million leaseholders and chart a course to a new system altogether.”. 12 January 2021. First, ground rents for new leases would be reduced to zero, which will effectively abolish the system. Here’s what we know so far. A cap will also be introduced on ground rent payable when a leaseholder chooses to either extend their lease or become the freeholder. Today’s changes mean both house and flat leaseholders will now be able to extend their lease to a new standard 990 years with a ground rent at zero. On 7 January 2021 the Ministry of Housing, Communities & Local Government announced major reforms to the law of enfranchisement following the Law Commission’s report published in January 2020. Today’s measures come as part of the biggest reforms to English property law for forty years, fundamentally making home ownership fairer and more secure. 7 Jan 2021. MHCLG will update the Gov.uk site in due course with the announcement. Introduction. On the timing of future legislation, Lord Greenhalgh, the Minister responsible for leasehold, responded to questions on 5 January 2021 and said: With new rules possibly arriving within two years, we analyse whether the prospect of the new rules will have an impact on the property market from today. The changes address a scandal that emerged several years ago as it was found that a number of houses and flats had been sold with clauses meaning that ground rents would rise dramatically years on. Otherwise, we’ll assume you’re OK to continue. Government Announces Big Leasehold changes – 7th January 2021 Home - News & Events This is big news in leasehold and in this is ‘Leasehold Reform News’ if ever there was… Four Changes to Leasehold Law that Property Owners Should Know About. Compare conveyancing fees from up to 4 solicitors, reallymoving ltd This entry was ... law Commission have today published their long awaited report into the legal aspects of the proposed reforms for the law in this area. This website uses cookies to improve user experience. Cookies for this website are disabled. The government has proposed the reform of leasehold laws, with new rules possibly arriving within two years. We will bring forward a response to the remaining Law Commission recommendations, including commonhold, in due course. The 1993 Leasehold Reform Act gives flat owners who have owned their property for at least two years the right to extend their lease by 90 years … 4. Leasehold Reform 2021 We set out below some comments and observations on the current proposals in order to put them into context and which we hope will be useful. The new measures include that owners of leasehold houses will be able to extend their leaseholds by 990 years at a zero ground rent, removing the much-publicised attempts by some freeholders and developers to sell properties with escalating ground … On 7 January 2021, the Secretary of State for Housing, Communities and Local Government, Robert Jenrick, announced that the government is planning legislation which will allow leaseholders to extend their lease to a new standard of 990 years with zero ground rent. The Fire Safety Bill has now passed into Law.The new Fire Safety Act 2021 applies to England and Wales and amends the Fire Safety Order 2005 (“the 2005 Order”), and along with the draft Building Safety Bill is part of a collection of legislation that aims to tackle the recommendations within the Grenfell Tower Inquiry.. An online calculator will be introduced to make it simpler for leaseholders to find out how much it will cost them to buy their freehold or extend their lease. 14B Chequer Street Some developers will likely oppose the changes. Following months of pressure from leaseholders, MPs, and media outlets such as the BBC and The Guardian, in July 2017 the Government vowed to put an end to poor leasehold practices by promising to ban the sale of new-build leasehold houses (although this is yet to be enshrined into UK law). This will also now apply to retirement leasehold properties (homes built specifically for older people), so purchasers of these homes have the same rights as other homeowners and are protected from uncertain and rip-off practices. There are three major proposed changes, further details of which are on the government website. Some of the cookies we use are essential for the site to work. You can use this tool to change your cookie settings. The government has pledged to give leaseholders in England the right to extend their leases by 990 years and end their ground rent payments once and for all. Eclipse Court Share this page. Introduction of an online calculator to simplify determining the cost of buying a freehold or lease … Please note the announcement, read more on the government website , follows several proposals recommend by the Law … These changes will apply to both house and flat leasehold ownership. Today’s measures come as part of the biggest reforms to English property law for forty years, fundamentally making home ownership fairer and more secure. If these changes are made into law they will potentially save leaseholders thousands The announcement states that this is part of a two-stage process of reforming the law with a response to the remaining Law Commission recommendations ‘in due course.’ That appears to indicate a longer time frame for the wider reforms. All the latest news, press releases, bills, white papers, research, articles, and blogs from The IRPM and across the industry. Further measures will be introduced to protect the elderly. There are three major proposed changes to leasehold laws, further details of which are on the government website. The Fire Safety Bill has now passed into Law without amendment following Royal Assent. Although developers say leasehold can work for many people, the government has already said that ground rents should be set to zero for new leases. Law Commission Report recommends major changes to leasehold laws Posted on February 10, 2021 at 10:52 am. On 7 January 2021, the Secretary of State for Housing, Communities and Local Government, Robert Jenrick, announced that the government is planning legislation which will allow leaseholders to extend their lease to a new standard of 990 years with zero ground rent. This will allow leaseholders to buy a freehold more cheaply. For some leaseholders, these changes could save them thousands, to tens of thousands of pounds. AL1 3YD. Under current rules, leaseholders of houses can only extend their lease once for 50 years with a ground rent. Read More. Millions of leaseholders will be given the right to extend their lease by a maximum term of 990 years at zero ground rent, the Housing Secretary Robert Jenrick has announced today (7 January 2021). What are the key proposals? Share on Facebook Share on Twitter Share by email. The commonhold model is widely used around the world and allows homeowners to own their property on a freehold basis, giving them greater control over the costs of homeownership. Extending your lease becomes necessary as it approaches 80 years in length. Under the current law many people face high ground rents, which combined with a mortgage, can make it feel like they are paying rent on a property they own. 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