One of the pieces of legislation that was saved when Parliament was dissolved on 24 May was The Leasehold and Freehold Reform Act.
The Act will make it easier and cheaper for leaseholders to buy their freehold, increase standard lease extension terms to 990, and provide greater transparency over service charges. The Act will also remove barriers for leaseholders to challenge their landlords’ unreasonable charges at Tribunal.
It will further ban the sale of new leasehold houses, end excessive buildings insurance commissions for freeholders and managing agents, and scrap the requirement for a new leaseholder to have owned their house or flat for two years before they can buy or extend their lease.
The act will also make it easier and cheaper for leaseholders to take over management of their building, allowing them to appoint the managing agent of their choice.
Like all legislation that is produced in a hurry with limited scrutiny, it is likely to be introduce as many problems as it does solutions, but the headline terms seem to be excellent news for the owners of leasehold flats and houses.
When we have had the opportunity of reviewing the Act we will aim to post updates on our website.
This article does not constitute legal advice and is intended to be guidance only. Ashworths are specialist property solicitors based in Wimbledon and one of our team would be pleased to talk to you about the sale or purchase of your residential or commercial property.