The Leasehold Reform Act
On 8 February 2022, the Leasehold Reform Act became law after receiving Royal Assent. You may have seen negative press lately about the rising cost of ground rents and ground rents causing delays with the sale of leasehold properties and extension of lease terms, whether a house or flat. The new law prevents this and seeks to give buyers of these types of properties confidence in their purchase.
What this means for you as a buyer of a new leasehold property?
This change will set ground rent to zero on new leases from summer 2022
What this means if you own a leasehold property?
Unfortunately, this does not impact leases that already are in existence. However, the government have advised that a new bill with a broader leasehold reform is expected later in 2022. We would advise anyone that owns a leasehold property and is considering selling imminently to get in touch before marketing the property so that we are able to review your lease and advise of any pre-sale steps we could take to prevent delays in the sale or issues with buyers’ mortgage lenders.
Rachael Howe, Head of Conveyancing at Frodshams Solicitors commented:
‘Whilst this is a fantastic step forward to make the market fair for buyers, rather than benefitting developers, there is still a long way to go with Leasehold Reform. Luckily, there are many leases that have no issues and lenders have been very helpful over the last 5 years in giving clear guidance as to which leases, they are happy to lend on and which they are not. We have become well versed in helping clients that own properties with onerous lease clauses and would be happy to assist with any queries you may have.’
If you need more information on the services we offer please visit https://www.frodshams.co.uk/legal-areas/conveyancing/ or contact us on or if you just want some initial free of charge and confidential advice call us on 01744 626 600, email info@frodshams.co.uk or visit www.frodshams.co.uk
At Frodshams solicitors we understand that all clients are unique with differing needs. That is why we take the time to listen and understand before we act. Knowing our clients is central to our ethos, and this means we bring compassion, care, understanding and the legal expertise needed to enable you to reach your personal, family and financial goals. So, whether you are buying a new home and need conveyancing support, or need a helping hand when life is difficult you know that you can rely upon us to provide legal excellence delivered with care.
