Posted 07.01.21
GOV.UK: Further reading
Housing Secretary Robert Jenrick has announced that millions of leaseholders will be given the right to extend their lease by a maximum term of 990 years at zero ground rent.
Under the current law many people face high ground rents, which combined with a mortgage, can make it feel like they are paying rent on a property they own.
Freeholders can increase the amount of ground rent with little or no benefit seen to those faced with extra charges. It can also lengthen and lead to increased costs when buying or selling the property.
The proposed changes will mean that any leaseholder who chooses to extend their lease on their home will no longer pay any ground rent to the freeholder - enabling full ownership their home without cumbersome bureaucracy and additional unfair expenses
The government is also now establishing a Commonhold Council - a partnership of leasehold groups, industry and government - that will prepare homeowners and the market for the widespread take-up of commonhold.
The commonhold model is widely used around the world and allows homeowners to own their property on a freehold basis, giving them greater control over the costs of home ownership.
Blocks are jointly owned and managed - meaning when someone buys a flat or a house, it is truly theirs and any decisions about its future are theirs too.
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