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Navigating the Leasehold and Freehold Reform Act 2024

Updated: Jun 23

What Leaseholders Need to Know

As a leaseholder, staying informed about changes in property law is crucial. The recent enactment of the Leasehold and Freehold Reform Act 2024 brings significant implications for homeowners. Hermione Homes will help you break down the key points:

1. Royal Assent and Transition:

  • The Leasehold and Freehold Reform Bill has officially become law, receiving Royal Assent.

  • While the Act doesn’t impose a cap on ground rent for existing leases, it aims to streamline freehold purchases. 2. Ground Rent Caps:

  • The Act caps ground rent at 0.1% of the property value when calculating freehold purchase costs.

  • This provision benefits leaseholders by potentially reducing expenses.

3. In-Force Provisions:

  • While the Act has received Royal Assent, most of its provisions are not yet in force.

  • Implementation depends on the decisions of the next government. 4. Labour vs. Conservative Stance:

  • If a Labour government assumes power, there is hope that they will promptly commence relevant provisions. However, the exact timeline remains uncertain.

  • The Conservative government, as indicated by Baroness Scott, plans to commence the Act between 2025 and 2026. 5. Clarity and AGM Considerations:

  • Given the upcoming general election on 4th July 2024, we anticipate swift action from the new government.

  • At our next annual general meeting, we should collectively address this matter.

Find out more on the government’s parliamentary bills website:

…and/or contact Hermione Homes for further clarification and assistance on the matter. 

Hermione Homes is a qualified advisory agency, it does not cost you a penny to contact us for a Free, Preliminary Consultation.

Get in touch through the contact form on our website by clicking here

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