Government consultation for more leaseholders to own their own buildings.

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    #16
    The Leasehold Reform (Ground Rent) Act 2022 comes into force on 30 Jun2022 and all new leases over 21 years issued after this date will state "one peppercorn" ground rent. This rule does not apply to leases under 21 years .This news was posted by the website shown below.

    But it is not clear if "new lease" includes "statutory 90 years lease extension".

    https://gateleyplc.com/insight/in-de...me-into-force/

    Comment


      #17
      Originally posted by Gordon999 View Post
      But it is not clear if "new lease" includes "statutory 90 years lease extension".
      They won't be affected as they've had nil ground rent since 1993.

      Comment


        #18
        Originally posted by Section20z View Post

        They won't be affected as they've had nil ground rent since 1993.
        So does "new lease" include non-statutory lease extension back to 99 years ?

        Comment


          #19
          Originally posted by Gordon999 View Post

          So does "new lease" include non-statutory lease extension back to 99 years ?
          One would imagine so if it was a new lease, though a Deed of Variation might dodge the law. Will find out next time I'm asked for one.

          Comment


            #20
            This was posted on the moneysavingexpert.com website on 11 May 2022 :

            The proposals – what we know so far


            Here is how the process of extending a lease will change, according to the proposals:
            • All leaseholders who can extend their lease will have the right to do so by 990 years. Currently, leaseholders of houses can only extend their lease once, by a 50-year period, while leaseholders of flats can extend leases as often as they wish for a 90-year period.
            • Many who extend their lease or buy their freehold will pay less BUT we do not yet know how much cheaper it'll be. A promise has been made that one of the charges involved in the cost of extending a lease or purchasing a freehold, known as 'marriage value', will be abolished. This is the amount of extra value a lease extension would add to your property, and it applies when a lease drops to less than 80 years in length (see full explanation here).

              While we can't say for certain how much cheaper extending a lease will become once the changes take effect, it is expected to be in the £1,000s for many leaseholders
            Sadly it is unclear when these proposals might become law


            While this is welcome news for homeowners, there is no definitive timetable for when these proposals around extending a lease will become law (we'll update this guide once we know more).

            Essentially, there are two separate leasehold bills. One of the bills will ban ground rents in new leases and prevent ground rents being added via informal lease extensions – this'll take effect from 30 June. A second, separate bill, will make the formal process of extending a lease cheaper and easier.

            Comment


              #21
              There is no certainty it will be cheaper to wait. It might be, but not by so very much. At present the calculations are based on interest rates that are higher than prevaling interest rates. This may fall, so that on a true valuation there isnt really any marrage value. It doesnt look as if the law will change very quickly, could be five years away, because they havent figured out how Commonhold will work in detail and without that its just tinkering.

              Comment


                #22
                Commonhold property system operates throughout Europe for past 100 years and in Australia where it is known as Strata title ( since starting in Melbourne , from around 1961) .

                Leasehold property has continued in E & W because every successive Government operates under the "rule of law" which protects the existing lease agreements . New leases for residential property can start from 99 years or from 125 years term and can be extended by statutory 90 years lease extension.

                The leasehold property system is not the choice of the silent majority ( public buyers ). Parliament has passed the LR(GR) Act 2022 ( one peppercorn ground rent ) which comes into enforcement on 30th Jun 2022.

                You are right "the law does not change quickly."

                Comment

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