The eagerly awaited Leasehold and Freehold Reform Bill 2023-2024 (LFRB 2023) is on the horizon, aiming to boost the rights of residential long leaseholders in houses and flats across England and Wales. What You Need to Know Leasehold Enfranchisement and Lease Extensions:
- Qualifying house tenants can now claim a lease extension or purchase the freehold right after acquiring their lease-no more waiting for a 2-year residency!
- Qualifying tenants can snag new leases for 990 years, a major jump from the current 50 and 90 years.
- New house leases will come with a minimal peppercorn rent.
- Say goodbye to complicated valuation methods; the new approach aims to cap ground rent and ditch the marriage value, making lease extensions more appealing to tenants.
Right to Manage:
- Previously limited to non-residential areas under 25%, the Right to Manage now extends to properties with up to 50% non-residential space, opening the door to more eligible properties.
Service Charge Regulation:
- Protections against excessive service charges under the Landlord & Tenant Act will cover fixed service charges.
- Brace yourselves for a new prescribed form for demanding service charges—using this form is a must, or else any lease provisions on late or non-payment become ineffective.
Why Stay Updated? As the bill progresses, it’s vital for both landlords and tenants to be in the loop. These changes can have a significant impact on your leasehold and freehold setups. Be prepared to adapt to the evolving landscape of property rights and regulations!
