The Leasehold Reform Bill (Ground Rent) is currently well on its way through the House of Lords. It’s the first instalment of a much wider programme of legislation that proposes to revolutionise the system of leasehold property ownership.
News & Advice
After a damning investigation by the Competition and Markets Authority (CMA), two of the most controversial companies involved in the unfair leaseholds scandal have agreed to amend their practices. Housebuilder Persimmon will allow leaseholders to buy their own leases at a substantial discount, while insurance company Aviva will remove the ‘doubling clauses’ from its leases and repay some of the vastly overinflated ground rents it has been charging.
As defined online., a periodic tenancy is one that rolls on a weekly or monthly basis with no end date. These usually occur after the end of a fixed term contract. This type of tenancy is one that some prefer dependent on their circumstances and whether they are the Landlord or the tenant. In this blog we will discuss the positives and negatives of a periodic tenancy from both a Tenant and Landlord point of view.
It’s fair to say that if we were designing a system of property ownership for the modern era, leasehold would not be it. It’s quirky, archaic and still rather prone to exploitation, but successive governments have worked hard to iron out many of its problems, and it can be a perfectly practical way to own property – so long as you understand your rights.
The UK Government has announced that all newly built homes must be sold under a freehold basis as Housing Minister James Brokenshire continues with plans to end unfair practices in the housing market. While the private sector rental market remains firmly in his sights, the Housing Minister is also working towards creating a fairer system for home-buyers and owners, too.
Across the UK, particularly in cities, many properties are owned in a leasehold capacity. While the leaseholder can make certain changes to their home, there are rules in the leasehold agreement and the freeholder is also responsible for certain details.