{"id":3453,"date":"2021-06-16T11:09:51","date_gmt":"2021-06-16T10:09:51","guid":{"rendered":"https:\/\/www.tayloremmet.co.uk\/blogs\/?p=3453"},"modified":"2021-06-16T11:09:51","modified_gmt":"2021-06-16T10:09:51","slug":"leasehold-properties-are-back-in-the-news-again","status":"publish","type":"post","link":"https:\/\/www.tayloremmet.co.uk\/blogs\/leasehold-properties-are-back-in-the-news-again\/","title":{"rendered":"Leasehold properties are back in the news again&#8230;"},"content":{"rendered":"<p><em>Sarah is here to help house buyers and sellers get to grips with the conveyancing process. This month, she discusses the government\u2019s proposed changes to the controversial, but not uncommon, leasehold system\u2026<\/em><\/p>\n<p>Leasehold properties are back in the news again, following the government\u2019s announcement that it plans to clamp down on high costs when homeowners attempt to extend their lease.<\/p>\n<p>The issue has been in and out of the press numerous times, as respective leaders have promised to improve the system, which can include penal ground rents, service charges and costly lease extensions.<\/p>\n<p>These measures are some of the biggest reforms to English property law for 40 years and look to make homeownership more secure.<\/p>\n<h3>I am considering buying a leasehold property, how will the government\u2019s reforms benefit me?<\/h3>\n<p>Unlike freehold properties, leaseholders do not own the land their property sits on. Instead, they are subject to a lease, which can typically range from 99 to 999 years.<\/p>\n<p>Your lease can be extended at any time through negotiation with the freeholder, but part of the fee for doing so is called the \u2018marriage value\u2019 and it represents the expected rise in your property\u2019s value once the extension is granted. Unfortunately, it can be difficult to determine and the costs applied excessive in some cases.<\/p>\n<p>Under the government\u2019s new plans, influenced by recommendations from the Law Commission, the marriage value will be scrapped. It is hoped this will also reduce the cost of buying freeholds, as it is, again, used when calculating the purchase price.<\/p>\n<p>The new legislation proposes to give property owners the right to extend their lease by 990 years at zero ground rent and to cap payments if you choose to extend your lease or buy the freehold.<\/p>\n<p>Currently, it is only possible to add 50 years to the lease on a house and often, it triggers a ground rent increase. At the moment, owners of flats can extend as many times as they want at zero ground rent, but only for 90 years.<\/p>\n<p>A new online calculator is being proposed to give homeowners an indication of the costs involved before they proceed with a lease extension or purchase. Further measures are expected to restrict the ground rent to zero on new leases, to ensure elderly people in retirement properties enjoy the same rights are other leaseholders.<\/p>\n<h3>Are there any alternatives to leasehold properties?<\/h3>\n<p>There is a method of property ownership called \u2018<strong>commonhold<\/strong>,\u2019 which is halfway between leasehold and freehold. It is seen as a much fairer system, but is very rarely used.<\/p>\n<p>The government has announced it is putting together a Commonhold Council, comprising a partnership of leasehold groups, to prepare homeowners for what it hopes will be the widespread uptake of commonhold properties.<\/p>\n<p>The proposal to set future ground rents at zero is about to be brought before parliament, in the first stage of this seminal two-part reforming legislation. The government wants to move forward a response to the remaining Law Commission recommendations, including commonhold, in due course.<\/p>\n<p>Leasehold properties are more prevalent in Sheffield than in other areas of the country. If you would like advice on purchasing or extending a lease, don\u2019t hesitate to contact me or my conveyancing colleagues on (0114) 218 4000.<\/p>\n<p>If you have a question about moving home, our residential property expert, Sarah Gaunt, would love to hear from you. Email: <strong>marketing@tayloremmet.co.uk<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sarah is here to help house buyers and sellers get to grips with the conveyancing process. This month, she discusses the government\u2019s proposed changes to the controversial, but not uncommon, leasehold system\u2026 Leasehold properties are back in the news again, following the government\u2019s announcement that it plans to clamp down [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":2193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[334],"tags":[564,809,943,1001,1193,1229],"class_list":["post-3453","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conveyancing-blog","tag-commonhold","tag-government","tag-leasehold","tag-marriage-value","tag-property-2","tag-reforms"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Leasehold properties are back in the news again... | Blogs<\/title>\n<meta name=\"description\" content=\"Leasehold 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