Cavendish Legal Group comments on Royal Assent for the Leasehold Reform Bill

Jonathan Frankel, head of the Property Litigation Department at Cavendish Legal Group, comments on Royal Assent for the Leasehold Reform Bill.

Following the Leasehold Reform (Ground Rent) Bill passing through both the House of Commons and the House of Lords, which means that after obtaining Royal Assent it will become law, Jonathan said:

“Although this new legislation will mean anyone purchasing a property with a newly created lease will have their ground rent limited to a nominal sum of one peppercorn per year, it does not address the problems that millions of existing leaseholders are facing with their ground rents.

“There is no certainty on a date for the introduction of a second bill, that may well incorporate some or all of the proposed reforms from the Law Commission. Meanwhile, existing leaseholders still have to contend with rising ground rents that make their property difficult to sell.

“For existing leaseholders unwilling to keep their lives on hold any longer, the only viable way forward will be to seek own legal solutions through leasehold enfranchisement. This would involve claiming a statutory lease extension in order to turn their ground rent into a peppercorn, and would enable them to resolve their situation without having to wait for further legislation to go through.”

Kindly shared by Cavendish Legal Group

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