The draft Leasehold and Freehold Reform Bill recently published by the government aims simplify the process for leaseholders extending their lease or purchasing their freehold. The Bill is the latest proposal in the governments manifesto to reform the leasehold sector.
One key change proposed include removing ‘marriage value’ from premium calculations of lease extensions and enfranchisements. This would significantly reduce lease extension costs in leases with less than 80 years left to run on the term.
It is further proposed that the lease extension term is increased to 990 years; that freeholders can no longer recover costs when a leaseholder extends a lease or buys the freehold and that where a premium is paid, ground rents are reduced to a peppercorn (£0).
For more information on this article or to discuss your property needs generally, please contact Alex Porter by email aporter@jpclaw.co.uk or telephone 020 7644 7272 or contact him on LinkedIn.
