The government says it will end the ‘feudal system of leasehold’ to provide homeowners with greater protection and a fairer deal.

The changes, announced in the King’s Speech, will be implemented in the Leasehold and Commonhold Reform Bill.

The guidance notes on the bill say the government will take steps to end the system of leasehold and reinvigorate commonhold by:

· enacting remaining Law Commission recommendations to bolster leaseholders’ fundamental rights to extend their lease and buy their freehold (enfranchisement) and take over the freeholders building management functions (Right to Manage).

· reinvigorating commonhold by modernising the legal framework. We will also restrict the sale of new leasehold flats. The government will consult on the best way to achieve this, so that generations to come will benefit from absolute homeownership.

· tackling existing ground rents by regulating ground rents for existing leaseholders so they no longer face unregulated and unaffordable costs.

· bringing the injustice of ‘fleecehold’ private estates and unfair costs to an end – the government will consult on the best way to achieve this and implement new protections for homeowners on private estates in the Leasehold and Freehold Reform Act 2024.

· ending the injustice of forfeiture so that leaseholders are protected against losing savings they have in their home for potentially small unpaid debts.

· In addition, the government will implement the Leasehold and Freehold Reform Act 2024 so that leaseholders can benefit from more rights, power and protections over their home.

We shall keep clients informed of developments.

Please contact us if you would like advice about the legal aspects of buying or selling a home.