Agenda item

Report of the Executive Director, Community & Children’s Services.

The Sub-Committee received a report of Executive Director, Community & Children’s Services concerning information on the Leasehold and Freehold Reform Act 2024 was given Royal Assent in May 2024 and will introduce wide-ranging changes to current legislation on residential long leases.

The following points were noted:

• Legislative Changes: The Leasehold and Reform Act introduces significant changes to leasehold law, including the abolition of ground rents for new leases and the extension of lease terms.
• Impact on Existing Leaseholders: Existing leaseholders will benefit from the right to extend their leases by 990 years at zero ground rent.
• Enfranchisement Costs: The Act simplifies the process and reduces the costs associated with leasehold enfranchisement, making it easier for leaseholders to buy the freehold of their properties.
• Commonhold: The Act promotes the use of commonhold as an alternative to leasehold, providing greater control and ownership to property owners.
• Implementation: The changes will be implemented in phases, with further details and guidance to be provided by the government.