Landmark Government reforms to make it easier and cheaper for leaseholders to buy their homes has been welcomed by the MP for Redditch Rachel Maclean.
Under the reforms, millions of leaseholders will be given the right to extend their lease by a maximum term of 990 years at zero ground rent.
The measures come as part of the biggest reforms to English property law for 40 years, fundamentally making home ownership fairer and more secure.
Currently, 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 changes will mean any leaseholder who chooses to extend their lease on their home will no longer pay any ground rent to the freeholder, enabling those who dream of fully owning their home to do so without cumbersome bureaucracy and additional, unnecessary and unfair expenses
For some leaseholders, these changes could save them thousands, to tens of thousands of pounds.
In welcoming the reforms, Rachel said:
“This is an issue a number of constituents have contacted me about over the years and so I’m glad the Government is acting.
“These reforms will make it cheaper and simpler for leaseholders to buy their own properties, making home ownership fairer, more secure and more accessible for my constituents.”
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.