The Leasehold and Freehold Reform Bill, set to become law in the summer of 2024 (at the earliest), aims to improve homeownership for 5 million leaseholders in England. The bill will hopefully reinvigorate investment in leasehold properties thereby fuelling the supply of properties to the private rented sector (PRS). 

The bill sets to make additions to Leasehold Reform (Ground Rent) Act 2022.

The key changes include:

1. Increasing the standard lease extension term to 990 years with ground rent reduced to a peppercorn.

2. Removing the ‘marriage value’ which increases costs when extending leases near expiry.

3. Allowing new leaseholders immediate access to benefits without needing to own for 2 years.

4. Allowing leaseholders in buildings with up to 50% non-residential floorspace to buy their freehold.

5. Setting a maximum time and fee for information required for property sales.

6. Ensuring transparency over leaseholders’ service charges.

7. Replacing buildings insurance commissions with transparent administration fees.

8. Extending access to redress schemes for leaseholders.

9. Scrapping the presumption for leaseholders to pay freeholders’ legal costs.

10. Granting freehold homeowners on private estates rights to challenge charges.

11. Ensuring freeholders and developers fund building remediation work.

12. Banning the sale of new leasehold houses, making every new house freehold except in exceptional circumstances.

Are you a landlord managing your own rental property? Imagine having expert guidance and practical help at your fingertips. At Ello Property, we specialize in supporting landlords like you with essential tools and resources to make property management a breeze. From lease agreements to maintenance tips, we’ve got you covered.

Visit www.elloproperty.co.uk today and let’s make your landlord journey smoother together!