The Housing Secretary announced yesterday plans to reform the current leasehold system and change “forever the way we own homes..”
It is proposing to establish a Commonhold Council that will prepare homeowners and the market for a widespread take-up of commonhold. Although it has been possible to set up commonholds in this country, this option has not been widely used with the leasehold model prevailing. In some cases, this has led to freeholders imposing escalating ground rents and leaseholders having no input into decisions that impact on their homes.
The proposed reforms will also simplify lease extensions. The first part of the reforming legislation is to be introduced in the upcoming session of Parliament which will restrict ground rents in future leases to zero. Further legislation is promised. To read the government announcement click here. https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes
For more information click here to contact Yvette Morgan.