Important leasehold reform news!
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).
The changes, making home ownership more secure, will mean that a leaseholder can extend their lease on their home but will no longer pay ground rent to the freeholder which could save them thousands of pounds. This reform also applies to all new retirement properties and forms part of the biggest reform to English property law for forty years. Under current rules, leaseholders of houses can only extend their lease once for 50 years with a ground rent. This compares to leaseholders of flats who can extend as often as they wish at a zero ‘peppercorn’ ground rent for 90 years. 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.
Housing Secretary Rt Hon Robert Jenrick MP said: “Across the country people are struggling to realise the dream of owning their own home but find the reality of being a leaseholder far too bureaucratic, burdensome and expensive.”
“We want to reinforce the security that home ownership brings by changing forever the way we own homes and end some of the worst practices faced by homeowners.”
“These reforms provide fairness for 4.5 million leaseholders and chart a course to a new system altogether.”
Read the full press release here: Government reforms make it easier and cheaper for leaseholders to buy their homes – GOV.UK (www.gov.uk)