Leasehold reform in England and Wales: What’s happening and when?
Leasehold and Freehold Bill 2023-24
The Leasehold and Freehold Reform Bill 2023-24 was introduced to the House of Commons on 27 November 2023. The Bill’s second reading took place on 11 December 2023.
-
The Bill’s main provisions would:
- make it cheaper and easier for leaseholders in houses and flats to extend their lease and buy the freehold.
- increase the standard lease extension term to 990 years, with ground rent reduced to a peppercorn (zero financial value), upon payment of a premium.
- change the qualifying criteria to give more leaseholders the right to extend their lease, buy their freehold and take over management of their building.
- improve the transparency of service charges and ensure leaseholders receive key information on a regular basis.
- give leaseholders a new right to request information about service charges and the management of their building.
- improve the transparency of administration charges and buildings insurance commissions.
- ensure leaseholders are not subject to any unjustified legal costs and can claim their own legal costs from their freeholder.
- give freehold homeowners who pay charges for the maintenance of communal areas and facilities on a private or mixed-tenure residential estate the right to challenge the reasonableness of charges and the standard of services provided.
- improve the transparency of estate charges and ensure freehold homeowners receive key information on a regular basis.
- ensure a rentcharge owner is not able to take possession or grant a lease on a freehold property where the rentcharge remains unpaid for a short period of time.
