1/5 #leaseholdreform took a step forward yesterday afternoon.
The Leasehold Reform (Ground Rents) Act 2022 received Royal Assent (hansard.parliament.uk/lords/2022-02-…)
The Act bans monetary ground rents for new residential properties.
The Leasehold Reform (Ground Rents) Act 2022 received Royal Assent (hansard.parliament.uk/lords/2022-02-…)
The Act bans monetary ground rents for new residential properties.
2/5 Ground rents have become an increasing scandal in recent years, with some finding they are trapped in unmortgageable properties.
Ground rents also entrench a system in which third party investors take control of a block of flats for a fraction of the price of one flat.
Ground rents also entrench a system in which third party investors take control of a block of flats for a fraction of the price of one flat.
3/5 As the fire safety scandal has shown, those third party investor freeholders add nothing to residential property management.
They see residential leaseholders only as cash cows to provide an endless stream of income for them.
They see residential leaseholders only as cash cows to provide an endless stream of income for them.
4/5 Congratulations to @LKPleasehold and @NLC_2019 for their tireless campaigning on this issue.
The Act is expected to come into force for new residential non-retirement properties by August 2022.
New retirement properties will be caught from 1 April 2023.
The Act is expected to come into force for new residential non-retirement properties by August 2022.
New retirement properties will be caught from 1 April 2023.
5/5 There is still more to do on service charges (particularly fixed service charges) and wider leasehold reform, including removing ground rents from existing properties.
The passing of the Act is a welcome step forward.
Much more to do.
The passing of the Act is a welcome step forward.
Much more to do.
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