Are you sure you want to delete your account?
You have indicated you do not agree to our terms of use, do you wish to delete your account?
Login
person
lock_outline
Why not sign up?

You will also be registered for the agent to contact you via other means you provide, with information relevant to your property search.

Register
There was an error creating your account, please try again. If the problem persists, please contact us and we will investigate.
Password does not match
How would you like to be contacted?

important changes to leasehold ownership

Published: 20/01/2021

Changes have been introduced to the Leasehold regulations to protect Leaseholders from high ground rents and extortionate costs when extending their lease.

On 21 December 2017, the Government announced plans to tackle the growing problem of newly built houses being sold as leasehold rather than freehold and limit ground rents on newly created lease agreements. Leasehold reform was included to identify ways to buy a freehold or extend a lease fairer and cheaper.

Under current rules, leaseholders of houses can only extend their lease once for 50 years with a ground rent, and leaseholders of flats can extend as often as they wish at a zero 'peppercorn' ground rent for 90 years. The changes introduced by the Government from 7 January 2021, enables homeowners to extend their leases up to 990 years at zero ground rent.

Housing Minister, Robert Jenrick commented:

"The new laws are being introduced to banish the scandalous pitfalls of leasehold and put fairness back at the heart of the housing system'"

The changes have been warmly welcomed by leaseholders and mean that anyone who chooses to extend their lease on their home will no longer pay any ground rent to the freeholder. A cap will be introduced on ground rent payable when a leaseholder chooses to either extend their lease or become the freeholder. Leaseholders will also voluntarily agree to a restriction on the future development of their property to avoid paying 'development value'.

To see the full changes, see the government legislation below:

Leasehold Reform, Housing and Urban Development Act 1993 (legislation.gov.uk)


/* Meta Pixel Code*/ /* End Meta Pixel Code */