Reforms to leasehold properties becomes law – Accountant in Wimbledon

The Leasehold and Freehold Reform Act has officially passed into law, bringing significant implications for both freehold property owners and developers of leasehold properties alike.

Under the new reforms, leaseholders are now exempt from the previous two-year waiting period before they can purchase or extend their lease. Should they opt for a lease extension, the Act mandates a considerable extension term of 990 years for both houses and flats, a notable departure from the previous terms of 50 years for houses and 90 years for flats. These adjustments aim to provide leaseholders with enhanced security regarding their residency.

Moreover, the sale of new leasehold homes has been prohibited, ensuring that nearly all new houses in England and Wales will commence as freehold properties, barring exceptional circumstances.

Furthermore, freeholders and managing agents are now obligated to issue bills using a standardized format, thereby enhancing transparency in charges. Additionally, the process for leaseholders to assume management control of their building has been streamlined, making it more accessible and cost-effective.

The government has also stipulated that freeholders managing their own buildings must be part of a redress scheme, a requirement previously reserved for managing agents.

For further information on these changes, please refer to: https://www.gov.uk/government/news/leasehold-reforms-become-law

GET IN TOUCH WITH OUR WIMBLEDON ACCOUNTANTS to navigate through these reforms and ensure compliance with the new regulations.