In the Kings Speech, the Government has committed to implementing the Leasehold and Freehold Reform Act (the Act) which has far reaching effects and consequences to homeowners.
Reforming Leasehold
One of the main objectives of the Act is to purportedly overhaul the existing leasehold system, which has often been criticised for its complexity and perceived unfairness.
An opportunity for Right to Manage will enable leaseholders to take over the management functions of their buildings from freeholders, giving them greater control and transparency on costs but also the responsibilities which go with this.
Ground Rents
In tackling the perceived unaffordable ground rents the new legislation will address this by regulating ground rents for existing leaseholders.
Ending Forfeiture and Promoting Commonhold
One of the far-reaching aspects of the legislation will be the abolition of the forfeiture system. At present a lease can be forfeited for small unpaid debts and this has been seen, rightly or wrongly, as disproportionate. Landlords will need to ensure, therefore, that they recover such debts in alternative fashion.
In a move to modernise property ownership the Government plans to reinvigorate commonhold, this is an alternative form of property tenure that allows homeowners to own their flats outright with shared ownership of the common areas.
Looking Ahead
As the Government prepares to implement the act, we at SE-Solicitors are on hand to advise and assist on navigating your way through the intricacies and detail. For more information about our Property Portfolio Management services including Debt Recovery, please click here
Recent posts by Andy Goater
Share this
