No more new Leaseholds

The government has recently announced that it will introduce a ban on the sale of new houses as leasehold, with new build houses to be sold on a freehold basis except in the most extraordinary circumstances. Ground rents will also be reduced to zero for any new leases entered into.

Communities Secretary James Brokenshire stated “We have long recognised that we have a responsibility to confront unfairness in the leasehold market”.

“We will legislate to ensure that in the future – save for the most exceptional circumstances – all new houses will be sold on a freehold basis. We are committed to taking bold action to reform the sector and will be pressing ahead as soon as parliamentary time allows.”

The new policy is in response to widespread criticism of the leasehold system of property which has left many homeowners unhappy with rises in the ground rent and service charge demanded by the freeholder, and that such charges have affected their ability to sell their property. The changes brought in however will only affect new build properties, and there is yet to be any comment from the government about reform to the leasehold system for existing properties.

For advice and assistance in selling your leasehold home, please contact our expert Residential Property team on 01604 828282 / 01908 660966.