Leasehold reforms will take years to become reality, warns legal expert

first_imgThe Government’s confusing new leasehold reform plans could take years to become law, according to one property expert.Far from benefitting millions of leaseholders who had expected the law to be changed almost overnight, Cavendish Legal Group’s Jonathan Frankel, head of its specialist leasehold enfranchisement division, says they’ve been given false hope by the leasehold reform promises as many barriers still remain.Housing Secretary Robert Jenrick announced this week that up to 4.5 million leaseholders would be given the right to extend their lease by up to 990 years at zero ground rent.This means they won’t have to pay any ground rent to the freeholder, which could save them tens of thousands of pounds. A cap will be introduced on ground rent payable when a leaseholder chooses to either extend their lease or become the freeholder, while Jenrick also announced that a new online calculator would make it simpler for leaseholders to find out how much it will cost to buy their freehold or extend their lease.Biggest hurdlesHowever, Frankel says that one of the biggest hurdles for new owners remains, as new leaseholders will still have to wait two years before they can start the process of obtaining their statutory lease extension. “This is one of the key elements of the much-needed reforms,” he says.“So, far from benefitting the many leaseholders who have been waiting for these reforms, it has only served to create confusion.”Frankel is calling for more detail and a timetable for implementation of the leasehold reform plans. He adds: “The clock is ticking as the pressing point remains – the shorter the lease gets; the more costly it will be to extend.”Under current rules, leaseholders of flats can extend their lease at a zero ‘peppercorn’ ground rent, but usually only for 90 years.Cavendish Legal Group’ Jonathan Franke Leasehold Reform January 9, 2021Nigel LewisOne commentAndrew Stanton, CEO Proptech-PR Real Estate Influencer & Journalist CEO Proptech-PR Real Estate Influencer & Journalist 11th January 2021 at 1:23 pmThere has always been a two year period, if a leaseholder fails to want to engage with a vendor of a leasehold property, but who is to say that many may now be more open as they see the way that the direction of travel now is. Also, as pressure grows, no doubt there may be more governmental ‘tinkering’ with the present, woefully inadequate system.Log in to ReplyWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021 Home » News » Leasehold reforms will take years to become reality, warns legal expert previous nextRegulation & LawLeasehold reforms will take years to become reality, warns legal expertJonathan Frankel of The Cavendish Legal Group says many barriers remain to making leasehold ownership fairer despite the Government’s hoopla.Nigel Lewis9th January 20211 Comment2,319 Viewslast_img read more