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Leasehold reform

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Hi,

I own a newbuild house with a RPI lease.

Would anyone know if there is any timeframe for the Leasehold Reform (Ground Rent) Bill? Realistically are we talking months or years?

Thanks in advance.


Comments

  • I would say years. Taking into consideration of the pandemic this is low on the government priority list. This should have been abolished a loooong time ago.
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Years, if at all.
  • eddddy
    eddddy Posts: 18,017 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 26 June 2021 at 11:31PM


    Just to clarify - it's unlikely that the reform will change your ground rent or RPI increases.


    But the things that the reforms are planned to do include:

    • Reducing legal/valuation fees when you buy the freehold - which might save you a thousand or two when you buy the freehold - but you'd still need to pay for the freehold itself.

    • If you can't afford the freehold - you might get the option of 'buying out' the ground rent - i.e. reducing it to zero. You'd still have to pay for this, but it should be a bit cheaper than buying the freehold.

    • The price of the freehold may (or may not) become cheaper. But I think most people are skeptical about this and don't think that freeholds will get much cheaper.

    But as others say - this may still be a long way off.

  • jay9011
    jay9011 Posts: 23 Forumite
    Third Anniversary 10 Posts
    eddddy said:


    Just to clarify - it's unlikely that the reform will change your ground rent or RPI increases.


    But the things that the reforms are planned to do include:

    • Reducing legal/valuation fees when you buy the freehold - which might save you a thousand or two when you buy the freehold - but you'd still need to pay for the freehold itself.

    • If you can't afford the freehold - you might get the option of 'buying out' the ground rent - i.e. reducing it to zero. You'd still have to pay for this, but it should be a bit cheaper than buying the freehold.

    • The price of the freehold may (or may not) become cheaper. But I think most people are skeptical about this and don't think that freeholds will get much cheaper.

    But as others say - this may still be a long way off.


    Thanks Eddy,

    I really would like to buy the freehold and move on. It's whether to hold out for the reforms to be passed. There isn't any time-scale, just proposals on the gov website. 



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