Niki Adkins, Head of Frettens’ specialist Lease Extension and Enfranchisement Team answers your questions about the major reforms announced earlier this month.

When were the leasehold reforms announced?

Robert Jenrick, Housing Secretary, announced in January 2020 that millions of leaseholders will be given a new right to extend their lease by 990 years.

The measures could save households ‘thousands to tens of thousands of pounds’ and are claimed to be part of the ‘biggest reforms to English property law in 40 years’.

What are the new leasehold reforms?

The changes to leasehold property law include:

• It will be possible to extend leases to 990 years with zero ground rents
• Lease extension premiums will be cheaper for leaseholders as a result of ‘marriage value’ payments being abolished where leases have already dropped below 80 years
• An online calculator will be created to assist leaseholders to work out how much their lease extension or freehold will cost them
• Ground rents will be abolished in new leases that are being granted for the first time

When will they take effect?

At the point of writing, the government have not indicated when these proposals will become realised law, and so we are presently unable to give you formal advice as to how the announcements will directly affect you.

However, we will of course be keeping abreast of developments and will update clients individually in due course.

Niki looks in more detail at the proposed changes, including how they may affect ongoing transactions, and what happens next, in her article here.

How do you deal with doubling ground rent?

Our advice is to sit tight and wait for a timetable to be announced if you can.

As soon as we know, we will update our site and share on social media and by email. Individual existing clients will be contacted directly with advice on their next steps as and when it becomes clear what should be done.

If you wish to be the first to know about timetables and future changes, you can sign up to our newsletter here. Be sure to tick the ‘property & landlord/tenant’ box.

Niki wrote about the issues of doubling ground rent, and how they can be resolved in another recent article that you can read here.

What do you think of the reforms?

I’m delighted that real progress appears to now be on the horizon for leaseholders who are in a less than favourable position.  The reforms hopefully mark the start of a new era of leasehold ownership, which I’m excited to see develop.

With two new faces  joining the team in January, we are fortunately very well placed to advise and help our clients as this develops.

Stay up to date with leasehold and property law news

If you wish to be the first to know about timetables and future changes, you can sign up to our newsletter here. Be sure to tick the ‘property & landlord/tenant’ box.

Specialist legal advice for residential leases

Frettens is one of the few firms in the region that have a specialist, dedicated Lease Extension and Enfranchisement Team. Niki Adkins heads a team of experienced professionals who specialise in helping people with the lease of their flat.

Niki recently welcomed two new faces to her team, including experienced leasehold expert Anne Albritton, who will be based in Frettens’ new Ringwood office when it opens in March.