There is a need to promote fairness and transparency for the growing number of leaseholders and to address unfair practices in the leaseholder market, which is why I am glad that a raft of radical reforms have been announced to tackle these issues.
Under new proposals, restrictions on the use of leasehold for new-build homes will ensure that the vast majority are sold as freehold, ending the unscrupulous practice of unnecessary leaseholds. Furthermore, ground rents for new leases, currently averaging around £300 a year, will be capped at the nominal fee of just £10. A six week technical consultation ran until the end of November to consider how best to implement these proposed reforms to leasehold.
The Law Commission was asked to consider a range of options for reforming the law on enfranchisement to make it easier, quicker, and cheaper for leaseholders to buy their freehold or extend their lease, which the Government will implement. Work is also being done with Trading Standards to provide leaseholders with comprehensive information on various routes to redress for leaseholders. I also welcome the industry pledge by over 40 companies to free existing leaseholders trapped in onerous deals.
While these measures will help to deliver a fairer, more transparent system for leaseholders, I know many leaseholders are currently being affected by charges and retrospective fees. If you are personally affected do contact me with your specific situation and I will do all I can to help.