The Leasehold Reform Bill is in the news today, but what is it and how does it impact you?

Ministers are facing calls to prevent leaseholders being threatened with losing their home over unpaid charges. Under current laws a property can be repossessed if the Leaseholder owes as little as £350 and the Government have recognised that this issue needs to be tackled.

The Leasehold Bill is making it’s way through Parliament and would ban the creation of the new leasehold houses in England and Wales and make it easier for Leaseholder to buy their Freehold.

Under the current system, Leaseholders often have to pay a ground rent to a freeholder as well as service charges to maintain the building, meaning that a Freeholder can apply to repossess a property if there is a breach of the lease – for example, not paying the ground rent or service charge.

Leaseholders do have some protection for example if the alleged breach is not agreed by the Leaseholder, the Landlord has to apply to a tribunal or court to determine the breach before they can start forfeiture action. However, many Leaseholders say that the threat of losing their home can be enough to persuade many Leaseholders to pay up before the legal process starts’

You can read all about the Leasehold Reform Bill’s progress through the House of Commons by clicking here.

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DISCLAIMER

This article is not to be relied on as legal advice. Please note that the circumstances of each case differ and legal advice specific to the individual case should always be sought.