There has been demands regarding a leasehold reform for many years, asking for the complex leasehold rules in the UK to be overhauled. The existing system is not easy to navigate and it can be expensive for the owners of leasehold houses and flats. The King's Speech last year announced the intention to make it cheaper and easier for leaseholders to purchase their freehold.

The bill has been passed through the first and second reading stage and now needs to be passed by royal assent. The public bill committee was responsible for scrutinising the bill, sharing expert evidence and information from interests groups. It also had to consider any amendments. This is now completed and has reported on the bill with numerous suggested amendments to the House. The report stage and third reading is due on 27 February 2024.

The main focus on the bill is to make it cheaper and easier when it comes to extending a lease, dealing with ground rent increases and making service charges transparent, along with making it easier for leaseholders to purchase their freeholds. It was believed, except in some exceptional cases, every new house in England and Wales would be freehold, unfortunately the bill failed to address this. Currently there is no ban on new leasehold houses.

Ray Crudgington, Managing Partner at Grant Saw Solicitors LLP, said “Currently you need to have owned your property for two years before you can ask to extend your lease. Right now there is an increase in premium needed to be paid in order to extend the lease as soon as it drops below eighty years, known as marriage value. It is very important for anyone with less than eighty years remaining to have their marriage value calculated, determining how much it will cost to extend the lease”.

The new bill is proposing to abolish marriage value and bring in a set method of calculating the premium payable to the freehold for a lease extension. Grant Saw Solicitors LLP provides effective lease extension legal services to clients, helping them manage their lease extension with confidence. Full details can be found on the legal firms information packed website.

About Us: Grant Saw Solicitors LLP is a London based law firm that caters to private and business clients. The firm has been operating since 1851 offering legal excellence and a modern and friendly approach. They are recognised for their excellence with numerous accreditations. Grant Saw Solicitors LLP are based in Blackheath and Greenwich, both offering disabled access. Their extensive range of legal services range from tenant and landlord disputes to residential property transfer, commercial property, insolvency, employment and dispute resolution.