Despite the Secretary of State for Levelling Up, Michael Gove, stating in January 2023 that he wished to “abolish the feudal leasehold system” it is reported today that this will be significantly scaled back as “there is not enough time before the next General Election”.
Leaseholders across the Country have been hopeful that the Government would follow through on the Law Commission’s recommendations that would have made lease extension and freehold enfranchisement far simpler and could have slashed costs by around half.
Instead the focus will shift to the Renters’ Reform Bill with much lower ambitions such as a cap on ground rents (which could lower premiums for properties with very onerous rents), powers to allow leaseholders to chose their own management companies and banning leaseholders incurring freeholders’ costs for disputes (still very unclear whether this would apply to a leasehold reform extension or enfranchisement claim).
The promise of such huge reforms, have given some leaseholders on short (sub 80 year) leases the option of waiting it out to see if premiums would fall and whilst this is still a possibility after the next General Election (no later than 28 January 2025) for now, it is very much business as usual.
Our surveyors at Peter Barry handle hundreds of lease extension cases per year and save clients thousands of pounds in negotiations. If you would like some free and impartial advice please either email or call on 020 8360 7615. We will be happy to help.