What Does Leasehold Reform Have in Store? - Jonathan Lea Network

What Does Leasehold Reform Have in Store?

What Does Leasehold Reform Have in Store?

On 30 June 2022, we saw the first of the proposed leasehold reforms come into force with the Leasehold Reform (Ground Rent) Act 2022.  The Act abolished ground rents on all new long leases of flats and houses so that only a “peppercorn” (zero) rent is payable on all new leases.

There are further proposed phase of the Reform which will include: –

  • Giving leaseholders the right to extend their lease to 990 years rather than only 90 years via the statutory route
  • Introducing a lease extension premium calculator whereby lessees will be able to calculate the premium for their lease extension online and thus preventing them from having to go to the expense of negotiating the premium with the freeholder
  • Abolishing the current marriage value payable when a leaseholder’s current lease is below 80 years which substantially increases the lease extension premium.
  • Enabling leaseholders with long leases to buy out the original ground rent without having to extend the term

Although the Government has outlined that they are committed to introducing further reforms, there is not as yet a timetable for when these reforms may come into force and therefore a leaseholder with a short lease may be well advised not to wait to extend their lease for this reason.

This article is intended for general information only, applies to the law at the time of publication, is not specific to the facts of your case and is not intended to be a replacement for legal advice. It is recommended that specific professional advice is sought before relying on any of the information given. © Jonathan Lea Limited 2023. 

About Karen Muir

Karen specialises in leasehold enfranchisement, including dealing with Tribunal and Court applications and has been working in this area for around seven years.

Karen’s wider practice also includes The Right of First Refusal, Licences to Alter, Deeds of Variation and all matters relating to landlord and tenant law. Karen has worked in Surrey, Sussex, Greater London and the South West of England.

The Jonathan Lea Network is an SRA regulated firm that employs solicitors, trainees and paralegals who work from a modern office in Haywards Heath. This close-knit retain team is enhanced by a trusted network of specialist self-employed solicitors who, where relevant, combine seamlessly with the central team.

If you’d like a competitive quote for any legal work please first send an email to wewillhelp@jonathanlea.net with an introduction and an overview of the issues you’d like to discuss, following which someone will liaise to fix a mutually convenient time for a no cost no obligation initial call with one of our fee earners.

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