{"id":21305,"date":"2021-07-15T10:16:42","date_gmt":"2021-07-15T10:16:42","guid":{"rendered":"https:\/\/smh.group\/?p=21305"},"modified":"2023-02-15T13:51:30","modified_gmt":"2023-02-15T13:51:30","slug":"leasehold-shake-up-on-the-horizon","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/leasehold-shake-up-on-the-horizon\/","title":{"rendered":"Leasehold shake-up on the horizon"},"content":{"rendered":"

Ground rents for residential properties on long leases in England and Wales will soon be abolished, with further reform to follow. This first step in the government\u2019s plan to reform leasehold law affects new leases. However, many homeowners will benefit immediately following a commitment made by two big players in the leasehold sector.<\/strong><\/p>\n

Government reforms<\/strong><\/h2>\n

The Leasehold Reform (Ground Rent) Bill currently passing through parliament will remove ground rents for residential leasehold properties with leases of more than 21 years.<\/p>\n

The next step, if the Government follows through with its intentions, will be to give leaseholders the right to extend a lease to a maximum term of 990 years, with no ground rent payable. This term is more than 10 times the current standard 90-year extension. An\u202fonline calculator will be introduced to\u202fmake it simpler for leaseholders to find out how much it will cost them to extend.<\/p>\n

Persimmon and Aviva<\/strong><\/h2>\n

The Competition and Markets Authority (CMA) has been investigating the leasehold sector, with doubling ground rent clauses of particular concern. Also, many homes that should ordinarily be sold as freehold have been mis-sold as leasehold. Crucial changes have recently been agreed by housebuilder Persimmon and insurance company Aviva (which buys leaseholds from housebuilders), including:<\/p>\n