The Government has today published the Commonhold and Leasehold Reform Bill, which seeks to further reform the leasehold system in England and Wales by making a number of significant changes to residential long leases.
The Bill is in its first draft, and may go through significant changes before it becomes legislation. However, the key proposals of the act are presently:
- The abolishment of the right of the landlord to forfeit for any breach of covenant. An alternative procedure for the right to enforce will be implemented.
- The abolishment of the ability to create a new leasehold flat after the implementation of the act.
- The restriction of ground rents during the variation of any existing flats to £250.00 per annum, for no more than 40 years following the implementation of the act, following which rents will become one peppercorn.
As we consider the content of the bill we will publish further updates and articles.
If you wish to discuss any of the above, please contact our Dispute Resolution Team below or call us on 01702 338338.
