LKP briefing on the Leasehold and Freehold Reform Bill

NB the consultation on ground rents is still ongoing – please respond to it even though it is a clunky survey. Please support the option for ‘set ground rents to peppercorn’ (i.e. ground rents can only be a small nominal fee). This is not as good as abolishing ground rents but it is good move in the right direction. Other key points in the bill:

i) Right to Manage is easier for developments with a large a percentage of commercial properties on the site (the % of commercial properties allowed in an RTM application will rise from 25% to 50%)

ii) Much harder for freeholders to take over the lease of a property just because rent or other charges have not been paid

iii) Easier for leaseholders to challenge service charges at first tier tribunal (the agent is no longer guaranteed to get their costs paid

iv) It is likely that no new houses can be sold leasehold (only freehold)

There are no firm dates for enactment of the bill though and it still has some way to go before (probably) becoming law.