Leasehold reforms - Boodle Hatfield

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07 Jan 2021

Leasehold reforms

Written by

Simon Kerrigan View profile
1 min read

The government's announcement on reforms to leasehold - removing ground rents and allowing lease extensions of 990 years, reforming the calculation of premiums payable and seeking to promote commonhold - will be welcomed by leaseholders although not only is the timing for when this will come into effect, and the precise circumstances in which ground rents will be reduced to zero, unclear, the process is likely to remain a complex area of law.  

Residential landlords will be keen to see the detail of the legislation as early indications are that this may have a not inconsiderable impact on the premiums they receive when leaseholders exercise these rights.

Under the new legislation, ground rents will also be reduced to zero on all new retirement properties.

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