On November 27, 2023, the Leasehold and Freehold Reform Bill 2023–24 was presented to the House of Commons. The second reading of the bill is set for December 11, 2023. Both Wales and England are covered by the Bill. Both freeholders and leaseholders would benefit from long-term adjustments meant to enhance homeownership.
Leasehold provides time-limited ownership (for example, a 99-year lease), and control is shared with the freehold owner, and the lease is usually limited by it. Freehold ownership is permanent and gives the owner extensive control over the property.
Main provisions of the Bill would be:
- Make sure that in cases where the rentcharge is not paid for a little period of time, the rentcharge owner cannot obtain ownership of the property or grant a lease.
- Ensure that important information is regularly provided to freehold homeowners and that estate costs are more transparent.
- Allow freehold homeowners living on a private or mixed-tenure residential estate to dispute the reasonableness of the fees and the quality of services rendered to those who pay for the upkeep of common areas and facilities.
- Make sure lessees can recover their own legal expenses from their freeholder and are not charged any unnecessary legal fees.
- Increase the administration fees and commissions from building insurance transparency.
- Provide tenants with a new avenue for information requests regarding building management and service fees.
- Enhance leaseholders’ access to important information on a regular basis and make service charge transparency better.
- To allow more leaseholders to purchase their freehold, extend their lease, and assume control of building management, the qualifying requirements should be changed.
- Extend the period of the normal lease extension to 990 years, with a peppercorn ground rent reduction, in exchange for a premium.
- Facilitate the extension of leases and the purchase of freehold by making it more affordable and simpler for renters of homes and apartments.
2023-24 Leasehold and Freehold Reform Bill download
