The Leasehold and Freehold Reform Bill: What Buyers Need to Know

May 30, 2024

The recent passing of the Leasehold and Freehold Reform Bill marks a significant moment for property legislation. 

If you are considering purchasing a leasehold property, read on to understand how this affects you.

What’s Changed?

The House of Lords passed the bill during preparations for the upcoming General Election. Despite cross-party agreement, there was frustration during the debates about the bill’s limitations. Many hoped for broader reforms that did not make it into the final version.

The Impact on Leasehold Properties

The good news is, that the new laws aim to simplify the process of extending leases and increase transparency, making buying, selling, and renting leasehold properties easier.
Research shows that in the past, leaseholders sometimes regretted their purchase due to complex leases and rising ground rents, which could make later resale challenging.

What is Still Missing?

Leading professional body, PropertyMark, has been championing leasehold reform for years. They believe the bill has imperfections but also provides potential benefits.

According to PropertyMark, the legislation missed an opportunity to address key issues. PropertyMark had pushed for the inclusion of regulations for property agents, especially in light of stricter building safety regulations. However, this was not incorporated.

Moving Forward

Propertymark are committed to working with officials for essential reform and will continue advocating for comprehensive consumer protection. This will be performed through mandatory training and qualification standards for property sector employees. 

How We Can Help You

At Mackenzie Smith, our PropertyMark-qualified estate agents can help you with clear and informed advice. As you consider your property options, we will help you to make a confident decision about your future home.

So, if you’re considering purchasing a new home in one of our areas, please feel free to get in touch. Our available properties can also be viewed on our website, here.

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