One thing that we do know, is that the Leasehold and Freehold Reform Act is now law. Passed in the last sitting Parliament before the General Election, the act allows for more accessible changes to lease extensions for residential properties, as well as greater transparency of service fees. The sector has been waiting for these changes for a long time, and the hope is that the law itself will be ratified once Parliament is sitting again.
Despite the twists and turns of Parliament, politics in general and the work required to make Acts legal, at Grafton Freehold Research we remain optimistic that changes are coming.
‘Leaseholders, anyone dealing with high service charges or missing or absent freeholders, should soon be in the position to challenge unfair charges, and not have to wait for years before solving their leasehold issues. The changes are very welcome, and should unlock some of the supply and demand issues within the residential market, by providing reassurance to lenders and buyers alike, that short leases are not a barrier to ownership,’ states Sarah Ryan, Co-Founder of Grafton Freehold Research.
There’s more to the Act. It should also remove the ‘marriage value’ component of Freehold and Lease Extension calculations. Some sector experts have seen this as unlocking up to £7 billion in the sector from landlords to tenants, which is a huge wealth transfer.
Mike McGovern, Co-Founder of Grafton Freehold Research comments: ‘Despite a change of Government, we expect that this Act will be ratified and pass into Law relatively quickly. This could unlock many cases for leaseholders and we await the next steps in Parliament with interest.’
If you’d like to know more about how the Act might change your individual circumstances, or impact a client’s case, please get in touch with Grafton Freehold Research for a no obligation conversation.
