The Ministry of Housing, Communities and Local Government announced that millions of leaseholders will be given a new right to extend their lease by 990 years with a ground rent at zero. Ground rent payable when a leaseholder chooses to extend their lease or become the freeholder will be capped. Prohibitive costs such as 'marriage value' will be abolished.
A so-called Commonhold Council will also be established to 'prepare homeowners and the market for the widespread take-up of commonhold'. The council will comprise leasehold groups, industry and government bodies.
Russell-Cooke senior associate Shabnam Ali-Khan welcomes these changes in The Law Society Gazette.
Government sets up council to 'reinvigorate' commonhold is available to read on The Law Society Gazette website.
Shabnam is a senior associate in the enfranchisement team.
She specialises in lease extension and enfranchisement matters, primarily under the Leasehold Reform Housing and Urban Development Act 1993 working with a variety of clients ranging from high net worth individuals and companies to individual leaseholders and investor landlords. Shabnam has carved out a niche in right of first refusal matters pursuant to the Landlord and Tenant Act 1987.
The full official announcement can be found on the Government website.