Leasehold - Revision history

Editor at 18:30, 14 October 2024

2024-10-14T18:30:24Z

← Older revision		Revision as of 18:30, 14 October 2024
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	* Leasehold enfranchisement.		* Leasehold enfranchisement.
	* Leasing a property - what you need to know.		* Leasing a property - what you need to know.
		+	* Leasehold and Freehold Reform Act 2024 (LAFRA).
	* Licence for Alterations for Apartment.		* Licence for Alterations for Apartment.
	* Meanwhile use.		* Meanwhile use.

Editor at 18:29, 14 October 2024

2024-10-14T18:29:13Z

← Older revision		Revision as of 18:29, 14 October 2024
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	= Updates =		= Updates =

−	==~~= 2017 =~~==	+	== 2024 ==

−	~~In July 2017~~, it was ~~announced that~~ the ~~government intends to ban builders from selling houses as leasehold in England~~. ~~In addition, ground rents on flats could be cut~~ to ~~zero following~~ long~~-standing controversy about exploitative contracts which have resulted~~ in ~~thousands of housebuyers being caught by spiralling charges. In extreme cases~~, ~~this has left some houses being virtually unsaleable~~.	+	The [https://www.legislation.gov.uk/ukpga/2024/22/contents Leasehold and Freehold Reform Act 2024 (LAFRA)] was enacted on 24 May 2024, the legislation was passed shortly before Parliament was dissolved, following announcement of the General Election. The act is intended to improve the rights of residential long leaseholders in England and Wales, and it also ammends certain aspects of the Building Safety Act 2022 relating to building defect remediation.

−	~~It will still be permitted~~ to ~~sell~~ flats ~~as leasehold~~, ~~but ground rents will be restricted~~ to a 'peppercorn~~' level. It is thought that this will render them~~ of ~~little financial value~~ to ~~speculative buyers. The ban is expected to come into force after an eight-week consultation period~~.	+	[https://bills.parliament.uk/bills/3523 At bill stage] its long title was decribed as a bill 'to prohibit the grant or assignment of certain new long residential leases of houses, to amend the rights of tenants under long residential leases to acquire the freeholds of their houses, to extend the leases of their houses or flats, and to collectively enfranchise or manage the buildings containing their flats, to give such tenants the right to reduce the rent payable under their leases to a peppercorn, to regulate the relationship between residential landlords and tenants, to regulate residential estate management, to regulate rentcharges and to amend the Building Safety Act 2022 in connection with the remediation of building defects and the insolvency of persons who have repairing obligations relating to certain kinds of buildings.'

−	~~For more information, see Peppercorn rent.~~	+	== 2023 ==

−	~~With regard to existing leaseholders stuck with charges, in some cases rents doubling every 10 years, the Department~~ of ~~Communities and Local Government (DCLG) is expected~~ to ~~consult on what it can do to support them~~. ~~It is thought this could~~ include ~~tackling unreasonable rises and giving householders more powers~~ to ~~fight unfair charges~~.	+	As of April 2023 the ground rent ban described above also applies to retirement homes. Future measures may include the right for leaseholders to extend leases to 990 years at zero ground rent along with online tools to assist leaseholders in buying freehold rights or extended leases.

−	Then-Communities Secretary Sajid Javid said; “Enough is enough. These practices are unjust, unnecessary and need to stop. Our proposed changes will help make sure leasehold works in the best interests of homebuyers now and in the future.” He also described some housebuilders as using ground rent “as an unjustifiable way to print money”.	+	== 2022 ==

−	~~Sebastian O’Kelly,~~ Leasehold ~~Knowledge Partnership~~, ~~said; “Leasehold houses are an absolute racket: a means~~ by ~~which developers have managed~~ to ~~turn ordinary people’s homes into long-term investment vehicles~~ for ~~shadowy investors~~, ~~often based offshore~~. ~~In short, plc housebuilders have been systematically cheating their own customers~~.”	+	The Leasehold Reform (ground rent) Act 2022 came into force on 30th June 2022 and impacts ground rent charges for new long residential leasehold properties, effectively preventing them from being charged by freeholders of leasehold properties. The new Act refers to regulated leases, which are residential leases for a house or flat granted after 30th June 2022, for more than 21 years and thus covered by the Act. There will be no requirement to pay ground rent or administrative lease related costs in relation to these regulated leases. There are a number of exceptions under the Act;

−	~~(Ref. [https://www.theguardian.com/money/2017/jul/25/leaseholds-new-build-houses-england-banned-ground-rent-flats The Guardian])~~	+	* Statutory lease extensions
		+	* Existing leases
		+	* Leases granted pursuant to contracts exchanged before 30 June 2022
		+	* Certain financial products such as home finance leases
		+	* Community housing leases
		+	* Business leases defined by the Act as leases of commercial premises

−	=== ~~2018~~ ===	+	In the case of informal (non-statutory) lease extensions for existing leaseholders the ground rent is restricted to zero. In the case of statutory lease extensions, the landlord is forced to reduce ground rent to a peppercorn for the lease term. Existing leaseholders not extended their leases could consider enquiring about a deed of variation regarding ground rent. Local authorities can impose fines up to £30,000 per lease, ground rent is required and payment not returned.
		+
		+	== 2021 ==
		+
		+	In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]
		+
		+	== 2018 ==

	In July 2018, Communities Secretary James Brokenshire announced that "unjustified" new leasehold housing will no longer be funded from new government schemes.		In July 2018, Communities Secretary James Brokenshire announced that "unjustified" new leasehold housing will no longer be funded from new government schemes.
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	A package of measures to shake up the housing market included new proposals for three-year minimum tenancy terms with a six-month break clause, to try and make renting more secure.		A package of measures to shake up the housing market included new proposals for three-year minimum tenancy terms with a six-month break clause, to try and make renting more secure.

−	== ~~2021~~ ==	+	== 2017 ==

−	In ~~Junuary 2021~~, the government ~~announced reforms ot make it easier and cheaper for leaseholders~~ to ~~buy their homes~~, ~~with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any~~ ground ~~rent~~ to ~~the freeholder. Ref [https://www.gov.uk/government/news/government~~-~~reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www~~.~~gov~~.~~uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]~~	+	In July 2017, it was announced that the government intends to ban builders from selling houses as leasehold in England. In addition, ground rents on flats could be cut to zero following long-standing controversy about exploitative contracts which have resulted in thousands of housebuyers being caught by spiralling charges. In extreme cases, this has left some houses being virtually unsaleable.

−	~~= 2022 =~~	+	It will still be permitted to sell flats as leasehold, but ground rents will be restricted to a 'peppercorn' level. It is thought that this will render them of little financial value to speculative buyers. The ban is expected to come into force after an eight-week consultation period.

−	~~The Leasehold Reform (ground rent) Act 2022 came into force on 30th June 2022 and impacts ground rent charges for new long residential leasehold properties~~, effectively preventing them from being charged by freeholders of leasehold properties. The new Act refers to regulated leases, which are residential leases for a house or flat granted after 30th June 2022, for more than 21 years and thus covered by the Act. There will be no requirement to pay ground rent ~~or administrative lease related costs in relation to these regulated leases~~. ~~There are a number of exceptions under the Act;~~	+	For more information, see Peppercorn rent.

−	* Statutory lease extensions	+	With regard to existing leaseholders stuck with charges, in some cases rents doubling every 10 years, the Department of Communities and Local Government (DCLG) is expected to consult on what it can do to support them. It is thought this could include tackling unreasonable rises and giving householders more powers to fight unfair charges.
−	* Existing leases	+
−	* Leases granted pursuant to ~~contracts exchanged before 30 June 2022~~	+
−	* Certain financial products such as home finance leases	+
−	* Community housing leases	+
−	* Business leases defined by the ~~Act as leases~~ of ~~commercial premises~~	+

−	~~In the case of informal (non~~-~~statutory) lease extensions for existing leaseholders the ground rent~~ is ~~restricted~~ to ~~zero~~. In the ~~case~~ of ~~statutory lease extensions, the landlord is forced to reduce ground rent to a peppercorn for~~ the ~~lease term~~. ~~Existing leaseholders not extended their leases could consider enquiring about a deed of variation regarding~~ ground rent~~. Local authorities can impose fines up~~ to ~~£30,000 per lease, ground rent is required and payment not returned~~.	+	Then-Communities Secretary Sajid Javid said; “Enough is enough. These practices are unjust, unnecessary and need to stop. Our proposed changes will help make sure leasehold works in the best interests of homebuyers now and in the future.” He also described some housebuilders as using ground rent “as an unjustifiable way to print money”.

−	~~= 2023 =~~	+	Sebastian O’Kelly, Leasehold Knowledge Partnership, said; “Leasehold houses are an absolute racket: a means by which developers have managed to turn ordinary people’s homes into long-term investment vehicles for shadowy investors, often based offshore. In short, plc housebuilders have been systematically cheating their own customers.”

−	~~As of April 2023 the ground rent ban described above also applies to retirement homes~~. ~~Future measures may include the right for leaseholders to extend leases to 990 years at zero~~ ground rent ~~along with online tools to assist leaseholders in buying freehold rights or extended leases.~~	+	(Ref. [https://www.theguardian.com/money/2017/jul/25/leaseholds-new-build-houses-england-banned-ground-rent-flats The Guardian])

−	= Other meanings of lease =	+	== Other meanings of lease ==

	[https://www.gov.uk/guidance/1862-act-register#glossary HM Land Registry: 1862 Act Register, glossary], published on 7 November 2014 by HM Land Registry, suggests that the word lease can have a number of meanings:		[https://www.gov.uk/guidance/1862-act-register#glossary HM Land Registry: 1862 Act Register, glossary], published on 7 November 2014 by HM Land Registry, suggests that the word lease can have a number of meanings:

Editor at 08:45, 2 November 2023

2023-11-02T08:45:53Z

← Older revision		Revision as of 08:45, 2 November 2023
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	In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]		In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]
		+
		+	= 2022 =
		+
		+	The Leasehold Reform (ground rent) Act 2022 came into force on 30th June 2022 and impacts ground rent charges for new long residential leasehold properties, effectively preventing them from being charged by freeholders of leasehold properties. The new Act refers to regulated leases, which are residential leases for a house or flat granted after 30th June 2022, for more than 21 years and thus covered by the Act. There will be no requirement to pay ground rent or administrative lease related costs in relation to these regulated leases. There are a number of exceptions under the Act;
		+
		+	* Statutory lease extensions
		+	* Existing leases
		+	* Leases granted pursuant to contracts exchanged before 30 June 2022
		+	* Certain financial products such as home finance leases
		+	* Community housing leases
		+	* Business leases defined by the Act as leases of commercial premises
		+
		+	In the case of informal (non-statutory) lease extensions for existing leaseholders the ground rent is restricted to zero. In the case of statutory lease extensions, the landlord is forced to reduce ground rent to a peppercorn for the lease term. Existing leaseholders not extended their leases could consider enquiring about a deed of variation regarding ground rent. Local authorities can impose fines up to £30,000 per lease, ground rent is required and payment not returned.
		+
		+	= 2023 =
		+
		+	As of April 2023 the ground rent ban described above also applies to retirement homes. Future measures may include the right for leaseholders to extend leases to 990 years at zero ground rent along with online tools to assist leaseholders in buying freehold rights or extended leases.

	= Other meanings of lease =		= Other meanings of lease =

Designing Buildings at 10:54, 18 January 2023

2023-01-18T10:54:23Z

← Older revision		Revision as of 10:54, 18 January 2023
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−	[[File:House-~~g2fce6f1fa 1280~~.jpg]]	+	[[File:House-g2fce6f1fa_1280.jpg\|link=File:House-g2fce6f1fa_1280.jpg]]

	= Overview =		= Overview =
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	* An old method of conveying land.		* An old method of conveying land.
	* A type of estate in land (leasehold).		* A type of estate in land (leasehold).
−	* Another word for a life interest, where interest is a ~~term used to describe any right or title to or~~ estate in ~~a piece of~~ land.	+	* Another word for a life interest, where life interest is a type of estate in land granted to someone only until they die.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Designing Buildings at 10:53, 18 January 2023

2023-01-18T10:53:26Z

← Older revision		Revision as of 10:53, 18 January 2023
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		+	[[File:House-g2fce6f1fa 1280.jpg]]
		+
	= Overview =		= Overview =

Designing Buildings at 10:51, 18 January 2023

2023-01-18T10:51:36Z

← Older revision		Revision as of 10:51, 18 January 2023
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	In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]		In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]
		+
		+	= Other meanings of lease =
		+
		+	[https://www.gov.uk/guidance/1862-act-register#glossary HM Land Registry: 1862 Act Register, glossary], published on 7 November 2014 by HM Land Registry, suggests that the word lease can have a number of meanings:
		+
		+	* An old method of conveying land.
		+	* A type of estate in land (leasehold).
		+	* Another word for a life interest, where interest is a term used to describe any right or title to or estate in a piece of land.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Editor at 09:42, 21 December 2021

2021-12-21T09:42:57Z

← Older revision		Revision as of 09:42, 21 December 2021
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	* Leasehold enfranchisement.		* Leasehold enfranchisement.
	* Leasing a property - what you need to know.		* Leasing a property - what you need to know.
		+	* Licence for Alterations for Apartment.
	* Meanwhile use.		* Meanwhile use.
	* Occupier.		* Occupier.

Editor at 20:26, 1 November 2021

2021-11-01T20:26:24Z

← Older revision		Revision as of 20:26, 1 November 2021
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	In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]		In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Assured shorthold tenancy.		* Assured shorthold tenancy.
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	* Subletting.		* Subletting.
	* Supersession.		* Supersession.
		+	* TA6 Property Information Form.
	* Tenant.		* Tenant.
	* Types of building.		* Types of building.

Designing Buildings at 12:14, 7 January 2021

2021-01-07T12:14:00Z

← Older revision		Revision as of 12:14, 7 January 2021
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	A package of measures to shake up the housing market included new proposals for three-year minimum tenancy terms with a six-month break clause, to try and make renting more secure.		A package of measures to shake up the housing market included new proposals for three-year minimum tenancy terms with a six-month break clause, to try and make renting more secure.

−	2021	+	== 2021 ==

	In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]		In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]

Designing Buildings at 12:13, 7 January 2021

2021-01-07T12:13:41Z

← Older revision		Revision as of 12:13, 7 January 2021
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	A package of measures to shake up the housing market included new proposals for three-year minimum tenancy terms with a six-month break clause, to try and make renting more secure.		A package of measures to shake up the housing market included new proposals for three-year minimum tenancy terms with a six-month break clause, to try and make renting more secure.
		+
		+	2021
		+
		+	In Junuary 2021, the government announced reforms ot make it easier and cheaper for leaseholders to buy their homes, with millions of leaseholders given the right to extend their lease by 990 years. The changes will mean that leaseholders who choose to extend their lease will no longer pay any ground rent to the freeholder. Ref [https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =