Leasehold: Fees and Charges

(asked on 2nd March 2021) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, what plans his Department has to bring forward legislative proposals to protect leaseholders from unreasonable charges when they seek to extend the lease on their property; and if he will make a statement.


Answered by
Eddie Hughes Portrait
Eddie Hughes
This question was answered on 8th March 2021

The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. We are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market.

Through our reforms, the length of a statutory lease extension will increase to 990 years, from 90 years (for flats) and 50 years (for houses). Leaseholders will be able to extend their lease with zero ground rent on payment of a premium. Leaseholders will also be able to voluntarily agree to a restriction on future development of their property to avoid paying ‘development value’.

The Law Commission’s report on enfranchisement includes recommendations relating to lease extensions, including payment of costs incurred by this process and the terms of the new lease. We will bring forward a response to these and the other remaining Law Commission recommendations in due course.

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