One issue that’s spearheaded the call for reform is some ground rent charges, which can increase considerably during the lease term. Many banks will not lend on leasehold properties where the ground rent charges increase more frequently than every 25 years.
A brief overview of the proposed leasehold reforms:
- New ground rents will have a cap of £0 (zero value), though this does not apply to existing ground rents
- Leasehold house owners will be given equal rights as their leasehold flat and apartment counterparts in respect of being able to challenge unfair charges
- Landlords and their agents must provide a ‘leasehold pack’ to buyers, if applicable, within 15 working days and at a cost of no more than £200 + VAT
- There will no longer be new leasehold houses, with a few limited exceptions for shared ownership and national trust/cooperative housing providers
Whether you are buying a leasehold property or you’re a freehold owner, instructing an experienced property solicitor can be invaluable. QualitySolicitors Lockings have over 30 years of experience in this area.
Call QualitySolicitors Lockings to Make a Free Enquiry Today and for a no-obligation quote on 01482 300 200.