The King’s speech today included a commitment to publish draft legislation on leasehold and commonhold reform. It said that:
- The Government will act quickly to provide homeowners with greater rights, powers and protections over their homes by implementing the provisions of the Leasehold and Freehold Reform Act 2024.
- The Government will further reform the leasehold system, enacting remaining Law Commission recommendations relating to leasehold enfranchisement and the Right to Manage, tackling unregulated and unaffordable ground rents, and removing the disproportionate and draconian threat of forfeiture as a means of ensuring compliance with a lease agreement.
- The Government will take steps to bring the feudal leasehold system to an end, reinvigorating commonhold through a comprehensive new legal framework and banning the sale of new leasehold flats so commonhold becomes the default tenure.
In addition, the Government have also committed to implement the Leasehold and Freehold Reform Act 2024 so that leaseholders can benefit from more rights, power and protections over their homes.
LEASE joint CEO’s Sally Frazer and Alice Bradley said, “LEASE welcomes the new Government’s proposals in the Kings’ Speech relating to leasehold and commonhold reform.
“The promise to quickly legislate to implement the provisions of the Leasehold and Freehold Reform Act 2024 is encouraging.
“We are also pleased to see the remaining Law Commission recommendations on leasehold reform will be part of a new Leasehold and Commonhold Reform bill.
“Reinvigorating commonhold and making it the default tenure for multi-occupancy buildings is also a priority for us. We will be participating in the proposed consultation in due course.
“The proposed ban on the feudal practice of forfeiture is welcome and long overdue.
“LEASE will be working with both the government and members of Parliament and the Select Committee during the passage of these reforms to help provide the expert knowledge of the LEASE lawyers.”
As Leasehold and Freehold Reform Act 2024 reforms are complex LEASE still expect implementation to be done in stages. Lengthy secondary legislation will be needed for some reforms.
Therefore, LEASE’s published advice and guidance remains up to date and accurate. The current laws on leasehold remain for now. We will update our advice and guidance as and when changes come into force.
If you are a leaseholder and considering your next steps, you may find the following useful.
