SHOCK Leasehold Reforms Become Law - Key Part Missing

SHOCK Leasehold Reforms Become Law - Key Part Missing
The UK government has finally passed the much-anticipated leasehold reforms, bringing significant changes to the property market. However, there's a critical element that didn't make it into the final law, leaving many homeowners and industry experts concerned.
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In this video, we'll break down:
What the new leasehold reforms entail
The key part that was left out and its implications
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[@jonathangems]

Many thanks James. Great news! And so unexpected! It's made my day, if not my decade! I am one of five leaseholder living in a house "owned" by a shifty freeholder who has never visited the property and managed by a management company that has never done anything to maintain it, yet imposes whopping service charges. We've been outrageously exploited for almost thirty years. They've made a fortune out of us.

[@scienceevolves4417]

Perhaps you may be aware the service charges will still be a thing. The new Act only says they're supposed to be more transparent and could be challenged in tribunals and LH owner won't pay the other party's costs. All positive changes I'm sure.

[@spencer2721]

The bill is garbage and has been completely watered down. I’m not sure why you seem so pleased you will continue to be exploited by your freeholder unless Labour bring in legislation to do the job properly

[@scienceevolves4417]

@@spencer2721 wouldn't count on it. Pretty much the last thing the LIEbour party cares about is good, honest, hardworking people. "Never underestimate the ability of any gubberment to f things up!" I'm also old enough to remember 97-2010 when Antony bLIAR's administration has pretty much torn apart and very nearly destroyed this once great country.

[@propertyaccelerator]

Great win for you glad to hear it.

[@davido4425]

Rip off UK !! Leasehold doesn't exist in France ! No chance ! They'd hit the bloody streets

[@suededogs9670]

I can't wait for the council to cough up some refunds! We pay them £1,200 a year service charge for what is basically a shit hole.

[@propertyaccelerator]

👍

[@choiceweddings01]

They needed to get rid off service charges🤬

[@scienceevolves4417]

And the rationale for that would be what? 🤔

[@spencer2721]

Or cap them at a certain amount, leaseholders should be able to pay a smaller amount for a minimum service level, at the minute they are just exploited by freeholders, management companies & service companies who have got into the leasehold sector as it so lucrative and they are pretty much allowed to charge whatever they want

[@mandrake-34-]

Or at least only charge it if they're actually providing a service. Say a block of flats where the grounds are legitimately maintained.

[@scienceevolves4417]

Mr Spencer and Mandrake I believe that's what the new statute is aimed to tackle. Full transparency means service charge will have to be justified by the LL. Otherwise it may be grounds for challenge. Question is as usual, will people want to go thru the hassle?

[@SilverWong-yo5iu]

A better way, in Hong Kong, is all apartment owners in the building of estate form an Owners' Corporation which collects and manages the fund for maintaining the whole building/estate and the employment of security guards, cleaners or paying companies to provide the above manpower. The income and expenditure record is more transparent in most cases.

[@cocosheffield79]

I live in one of these terraces in Sheffield which is leasehold with missing landlord. These reforms don’t really help people like us but I’m happy that people in flats will benefit and not get massively ripped off with increasing ground rent and crazy management fees

[@propertyaccelerator]

🙏

[@edwardhammond5582]

Ground rent is spelled out in your lease; agreeing to pay it is part of what you signed up for when you bought. Management fees... yes, you can be mugged. I hope that gets fixed.

[@viviant701]

I am in the same situation.

[@HarryNicNicholas]

i'm pretty sure management companies get kick backs from people who do shoddy repairs then have to repair their repairs.

[@spencer2721]

Goes in all the time, a crap quality of work things break time and time again, and the leaseholders have to pay time and time again, it’s a scandal robbery by any other name

[@propertyaccelerator]

100% they do. This will help stop that.

[@paulmurphy63]

Thank you James! - Been waiting for this video. you talk the language people understand!

[@propertyaccelerator]

Thanks Paul

[@LP-qz9ky]

Bad news about ground rent....such a rip off

[@propertyaccelerator]

But if you extend your ground rent goes to zero anyway.

[@daljeetghag3321]

Issue is the doubling clause, renewing is very costly

[@scienceevolves4417]

​@@daljeetghag3321you realise there's a thing called inflation? I don't suppose doubling of rent over 10 years is an onerous clause although it would be helpful if this were better regulated. Having said that, most ground rents are costing several hundred pounds per year. So even with the doubling clause, it will take decades before that ever becomes an issue. Maybe your grandchildren are gonna really have to worry about that, but chances are that by then someone will have extended the lease and sorted it all out.

[@edwardhammond5582]

Why complain about ground rent? You should have been aware of it before you signed up to willingly pay it.

[@truthseeker7612]

​@@propertyacceleratorExcuse my obvious ignorance but how does extending bring our ground rent to zero.

[@scienceevolves4417]

This guy both cracks me up & infuriates me with his whiteboard space management. Wouldn't it be easier to start typing from the left hand side I wonder? 🤔 If you gave him a cuppa, would he drink it from an upside down position?🤔

[@FinancialHealth-ku1ry]

Or invest in a smart board?

[@scienceevolves4417]

@@FinancialHealth-ku1ry smart idea 🙂

[@LesleyMcLauchlan]

Yet he manages complete each list without going off the edge of the board. I find it intriguing and like his individuality!

[@Rapid_GT]

And what would happen being right handed if he was to do that ? Have a think 😉

[@davidellis279]

About time these robbers were brought to boot,it’s scandalous that you can buy a property and yet not own the land it stands on,this is just another rip off by the builder who buys the land and then profits from it for hundreds of years.

[@elsamaria1914]

Great news and thank you for your explaining the ups and downs regarding leasehold property.

[@propertyaccelerator]

Any time!

[@simeonbrookstone350]

Ive been going insane with the abolishment of marriage value today, with some sites reporting that final clauses kept it in! Thanks for clarifying....now we just need the secondary legislation to support.

[@propertyaccelerator]

👍

[@Andrew-gb4hj]

I was the same! so many sites were saying marriage value was excluded

[@lovejetfuel4071]

I think it was an amendment that was tabled by some tory scumbag, that was then thrown out, but somehow was kept in news articles

[@hannahh6618]

Well done the Tories

[@lily_m3538]

Part of a RTM company with five flats. Three of the leaseholder's band together, knock back any improvement ideas, and are slow on performing essential maintenance so that it costs more in the long run. They don't want to invest in anything and use their buddy to do most of the management. A nightmare. Please do a video on RTM - especially what to do when it doesn't work.

[@propertyaccelerator]

It can be a total nightmare for sure.

[@fluffy-puffy-puppy]

Thanks for this lots of positives, although not perfect. I might hold off desperately selling my flat to see how this plays out.

[@propertyaccelerator]

👍

[@knowbs2122]

The other racket is , freehold more than 5 properties and you can become your own insurance company , Therefore double billing , bill the Leaseholder and bill the insurance Co,

[@propertyaccelerator]

👍

[@stuartgunn8745]

Great video, thank you for sticking at this and explaining it so well, 👍 Thank you to Gove and the Tories, for atleast one good thing they have completed, Just need the interest rates to fall now and they get my vote.

[@scienceevolves4417]

Hell yeahhhhh, Lovey dovey govey has redeemed himself after 20 years of total ineptitude and incompetence whilst sat in parliament. "Every generation has its own Christ" comes to mind!

[@propertyaccelerator]

It seems they have had a massive surge in the polls in the last few days. I wonder how much is down to this.

[@richfroggatt2452]

Great news James, i believe it's going to be easier to buy the freehold too.

[@propertyaccelerator]

Yes much easier and cheaper.

[@alexjames7106]

How will it be cheaper exactly?? Do you also know how the calculation is now cheaper to extend a lease too? Thanks! 😊

[@richfroggatt2452]

@@alexjames7106 nobody knows the calculations yet, but the act states that it will be easier and cheaper to extend or buy the freehold. That part was unchanged from the bill.

[@keithbroad7501]

So by abolishing ‘Marriage Value’ altogether, would I be right in thinking that the old ‘80 year’ deadline to avoid paying it ceases to even be a relevant concern any longer & leaseholders can legitimately wait now until whenever they can afford to extend the lease on their property by 990 years & maybe even delay doing this until just before they intend to sell their property & thereby wait until that time to increase its value? 🤔

[@propertyaccelerator]

Yes in future it wont have an impact at 80 years.

[@Tallisper]

The new reform hasn't met my expectations. While it has made some improvements, leasehold still exists in a different form. A form that may be amended again in the future for the better or for the worse. Fortunately, I hold both British and European citizenship, which makes it easier for me to buy a property abroad. I would have preferred to invest in the UK, but even with these reforms, it's still not enough. Leaseholders remain too entangled with various obligations and external contractors. I'd rather buy a flat in a condominium where I own it outright.

[@spencer2721]

I completely agree leaseholders will continue to be exploited and charged a lot of money so these management companies, freeholders & service companies can make a lot of money from the less well off, the system is completely wrong and this does little to change it

[@propertyaccelerator]

But if you just took the freehold from someone in law they have human rights. So they would need to get paid which would cost the government billions. You would then pay more tax so we all pay either way.

[@Tallisper]

Pension funds, mutual funds, investment funds, corporations, banks, etc., have all acquired the right to cash flow from ground rent on multiple properties or own the freehold to generate cash flow through management firms. Leaseholders should be given the right to pay off 100 years of ground rent in advance to acquire the freehold right over the property they previously bought as a leasehold. For example, if you pay £400 a year, then multiply it by 100 = £40,000. This is the amount you should pay to acquire the freehold. This would allow pension funds, mutual funds, investment funds, corporations, banks, etc., to reorganize their portfolios without facing the shock of losing money. This will never happen because the government is colluding with these bodies, which pump money into political parties to pursue their own agendas. To me, it's utterly ridiculous that people have to fight to rightfully own something they've spent hundreds of thousands of pounds on. Between leasehold and renting, renting is better. At least with renting, you retain some flexibility of movement without having to pay decades of rent in advance. In both cases, you own nothing. In conclusion, leasehold is just hybrid communism in a free capitalistic market. The issue has nothing to do with money, it has to do with power through ownership.

[@Alexxx---101]

Lovely jubbly, I bought a flat based on the rumor of abolishing marriage value a couple of years ago for a massive discount, the lease was 60 years and the guy couldn't sell it. That will be going up for sale soon then 😁

[@scienceevolves4417]

And nobody will buy from you!! 😂😂😂😂😂

[@Alexxx---101]

@scienceevolves4417 Well that's bullsh*t

[@22448824]

@@scienceevolves4417 Always good to read a highly informed comment like this one.

[@propertyaccelerator]

👍

[@Ash-xi1hr]

Guy goes to comment section without watching the video..

[@deloressangster6309]

Thank you James this is wonderful news especially about the marriage value now i can sell my flat and get a decent price Hooray!!!

[@propertyaccelerator]

🙏

[@dianegrandison1331]

Great news.Thank you for breaking down this new Leasehold Reform Act.

[@propertyaccelerator]

Any time!

[@FatEd1357]

Management fees will just go up to make up for the lost fees from commission and marking up maintenance costs presumably. At least there will be proper transparency though.

[@propertyaccelerator]

You have the right to manage, so if you dont like the fees manage yourself with other leaseholders.

[@inerit5175]

My leaseholders have just sent a letter saying they will charge £60 for payment reminder and £2000 for solicitor fees for lack of payment! They will find a way!

[@andybellklas1678]

I put my final offer in yesterday on a short lease (50years) ill hear back today i hope they arnt going to reject it now knowing this deal just got alot more valuable for me

[@yusufhussain-th1ru]

No lad. I'm afraid it just got a lot more valuable for them.

[@scienceevolves4417]

What dyou mean "final offer"? Don't you have another 50 years left to make more offers?

[@propertyaccelerator]

They might not have the cash to extend the lease anyway. But yes get the deal done fast!

[@22448824]

This is great news. Especially about the marriage value. I have 5 flats all less than 70 years left on the lease. What I’d like to know is what has changed. A few weeks ago you did a video of how all significant changes to leases were being dropped.

[@HarryNicNicholas]

i paid £5000 to extend and another £900 to cap rent, that was five years ago, now i have to do it all over again....

[@propertyaccelerator]

Nice work that will save you so much money.

[@user-rx4mm9el4n]

This is a great overview, thanks James!

[@propertyaccelerator]

Thanks so much.

[@user-rx4mm9el4n]

@@propertyaccelerator I have a sense that most freeholders will try to delay as much as possible, particularly in the instance of marriage value. To your point though, it's worth getting in touch with them early and see if you can push through an early deal, particularly if it's now when and not if...

[@edwardhammond5582]

The problem property management Company wasn't Common Ground Estate and Property Management, by chance? They're shockers. In fact, we had to take them to court to get service charge funds back.

[@propertyaccelerator]

Its a lot of companies.

[@davidhookway514]

Was in a flat some years ago with a 900 plus year lease. We all purchased the Freehold of the Block between us very cheaply. I think it was called 'Common Hold'.

[@scienceevolves4417]

A process known as collective enfranchisement.

[@propertyaccelerator]

Yeah thats a smart thing to do if you all get along.

[@SilverWong-yo5iu]

Is Common hold the same as share of freehold?

[@scienceevolves4417]

@@SilverWong-yo5iu for all intents and purposes yes. You're a Fh owner-occupier for your own little space say a flat. Plus getting an equal share of Fh ownership on par with others on the land and common areas of the building.

[@MrAvant123]

Bought a flat for my daughter in SW London 2 months ago -- so this is a huge plus for her. Frankly I'm amazed the tory chums in the Lords allowed this to go through -- given many of them are huge landlords !

[@propertyaccelerator]

Yes it was a surprise.

[@bye-72]

Great news, I’ve got 83 years left on my lease.

[@propertyaccelerator]

👍

[@rachelb8863]

Important note it is not law it is legislation. There is a huge difference. Statutes axe mandates policies guidelines this is all part of legislation. Parliament government cannot create laws only the people can

[@propertyaccelerator]

👍

[@sfarhan147]

Thank you, James, for distilling the information and making it easily digestible

[@propertyaccelerator]

My pleasure.

[@leewellstead2305]

Thanks James for another information packed video on property. Keep the good news coming.

[@propertyaccelerator]

No problem

[@chrisdickinson4576]

Marriage Value abolition is great if you are a cash buyer looking to snap up a short lease property, extend the lease and flip it.

[@propertyaccelerator]

I agree a few people will be doing that strategy.

[@Rick-xp5sy]

Always challenge things you feel aren’t right or unfair, always.

[@propertyaccelerator]

Correct

[@Appollochan]

Thanks for the info, I learn about all the leasehold changes through you haha :3

[@propertyaccelerator]

No problem!

[@thecomingman1591]

How will we know if the management company has got the best insurance deal? Who monitors or checks? Will any fee charged to landlords for setting up the insurance compensate for the loss of commission on insurance? I doubt whether any of this will lower management fees for the Landlord. I believe the law may not come into effect until next year.

[@propertyaccelerator]

We dont know, but we can now ask did they receive commission.

[@NewModelRailway1]

I don't like to tell you how to do your job James but Right To Manage should've been far nearer to the top of the list.

[@scienceevolves4417]

Well the right to self govern and self manage property is basically a cop out idea off commonhold (CH) system - very popular in continental Europe, but very little known and little used in England. So they might as well get rid of the not fit for current standards LH system altogether and switch all these interests in the land to CH. This would provide for less extortion and far greater security of tenure. Main difference of course being that under LH the owner of the lease is subject to and reliant on the will of the FH owner, while under CH each one is the outright owner of their own piece and a joint owner on par with the others of the common piece. Sounds like a solution when it comes to flats.

[@propertyaccelerator]

😂🙏

[@johnbell1859]

Thanks James, still a bit of digging to be done I guess. But it’s much better than it was. 🇬🇧

[@propertyaccelerator]

Yes its pretty good news.

[@nickyes783]

Super important to note that the act received royal ascent on 24 May, and so is law now! Great news. Could have been better, but still really good progress.

[@propertyaccelerator]

👍

[@scienceevolves4417]

It is and it isn't law. Sort of like Schroedinger's law at the moment. The only parts with a confirmed commencement date are the amendments to the Building Safety Act 2022 which will kick in from 24 July 2024.

[@abdoboul1575]

Thank you james. The best news so far🎉🎉🎉

[@propertyaccelerator]

No problem

[@gojo2194]

Charles needs to free up all leasehold imo asap

[@propertyaccelerator]

👍

[@Cha1bs]

I wonder how this will affect leasehold property prices. It'll push them up a tad, I expect.

[@propertyaccelerator]

I agree prices will go up.

[@KAISERDJG]

my local council have a charge on my property because its ex council . the previous person bought it RTB and now theres a charge on it saying in future the coucil "could" charge me ground rent on a property and land i own???? if i own the land and the house, what give the council right to charge me anything??? its nothing to do with them... every time i switch providers on my mortgage i have to pay the council 70 quid just to notify them and they have bloody no rights over my house!!!! i dont know whther to take them to court or not because i dont get the legality of it... i dont understand how someone else buying the house off the council and then me buying it off them means the council have anything to do with it anymore.... they sold it... what right do they have.

[@scienceevolves4417]

Confusing. Did you buy Fh or Lh title? Either way I'd seek legal advice on it.

[@propertyaccelerator]

Im not sure how that works, I would contact a solicitor for clarity.

[@KAISERDJG]

@@scienceevolves4417 its freehold, but the council say they reserve the right to charge "freehold service charges" which makes no sense because i pay council tax for my area improvements so what exactly are they going to charge me for ??? theres no other restrictions involved and they have a hand in my pocket each time i switch lender on a private owned property and land... it infuriates me

[@andybennett9296]

Great news although not perfect news. You mention that the marriage value has been scraped and mention that the total cost could half. I was under the impression that MOST of the cost in extending the leasehold was the marriage value. Therefor wouldn't the cost deduction be a greater percentage? Once you take away the marriage value and paying their legal fees, what actually is there left to pay for and how is that calculated??? Last year I was quoted 38.5K to extend my leasehold plus £1500 for their legal costs. Total 40K plus my legal expenses. I worked out that there was approximately 80K profit in the property so I presumed most of their fee was the marriage value which I believe is calculated as 50% of the profit. I would love to know an estimate of what i would be expected to pay now. Surely it should be 70% to 90% cheaper?

[@propertyaccelerator]

There are still some hefty costs extending without marriage value. Use this calculator and put in dates that dont have marriage value to get an idea. www.lease-advice.org/

[@frze5645]

How about cutting your whiteboard into two parts and put the left hand side (that you never use) on the right of the right side and give yourself a full board on which to write? ... or start writing on the left hand side. Just saying.

[@propertyaccelerator]

👍

[@miacat1727]

Leaseholders have always had the right under the Landlord Tenant Act, to challenge Service Charges, using FTT if necessary, so not sure of what respect this Reform has made any difference.

[@propertyaccelerator]

It be easier (Waiting for them to say how) but the more public knowledge around this the more management companies will comply.

[@margaretfleming3554]

This has been most useful, thank you!

[@propertyaccelerator]

Glad to hear it!

[@jeff4907]

You mention the abolition of having to pay the Landlord's Legal fees on lease extension, I don't think this is correct. The Government's website only refers to the abolition of having to pay Landlord's fees when challenging unfair practice and 37(19B) and 37(19C) of the Bill seem to state that in most cases the tenant will still be liable for the Landlord's costs.

[@propertyaccelerator]

It is in the full bill.

[@jeff4907]

​@@propertyaccelerator Can you confirm where. The bill states that the purchaser will be responsible for landlords costs for successful claims. There are then limits on this but the liability is still there.

[@Yonaish123]

How do we challenge the council on the service charge and their management of the block? Two years ago I was paying £50 per month, last year they start charging £99 per month and this year £140.88 per month ! It's unbelievable the way they increased prices. How can I deal with this ? Do I have to get a lawyer ? I bought the flat on right to buy scheme, more than 15 years ago and back then the service charge and ground rent were minimal, now it's an absurd.

[@ReeRee_Donita]

Maybe try to rally those in your position together and have a meeting about it then decide how you’ll write a formal complaint to your council.

[@propertyaccelerator]

You can self manage if you get other leaseholders to agree or at lease the majority of them.

[@thenorthstar311]

Thanks James really appreciate this

[@propertyaccelerator]

🙏

[@annieduncan7062]

I've just instructed my solicitor to issue the section 42 because they have said its in my best interest to do it before the 80 years as they have looked over the changes. Now I'm wondering if they are worried they are losing my money to get it sorted and im being used!

[@propertyaccelerator]

Annie they are correct it is best to do this before 80 years. They have to act as if they might never happen as their job is to act in your best interest. I would speak to 3-4 leasehold specialist solicitors and see what they suggest for your specific case.

[@viviant701]

Thank you for sharing your knowledge❤

[@propertyaccelerator]

No problem

[@neillyboy3123]

You are a legend for presenting this priceless package of information, thank you James 🎉

[@margaretgoodwin7945]

Thank you for your help and guidance God's blessings to you and yours

[@propertyaccelerator]

My pleasure.

[@puilau2287]

Thank you, very well informed

[@propertyaccelerator]

Thanks so much.

[@Sam_Green____4114]

I have to pay 107 per month service charge now, just for someone to come every TWO weeks and hoover the small entrance hall and stairways and communal areas and pick up some leaves outside ! It used to be every week until all the tenants had a vote to make it every two weeks because the leaseholder promised to reduce the charge if we did ! Guess what ? The amount stayed the same after they started doing it every two weeks ! It was only reduced when I phoned up to complain !! Then it didn't stay reduced for very long !! It went up from 72 pounds a month !

[@propertyaccelerator]

👍

[@scienceevolves4417]

Ah yes, the delights of the service charge!😅

[@gilliancorkhill5480]

Thank you for this vital information.

[@propertyaccelerator]

Glad it was helpful!

[@tony-mc1py]

Great video v helpful! Can you do a video on what was not changed and we should keep an eye out for ?

[@propertyaccelerator]

Sure

[@silentgirltears782]

Hi James, As a novice leaseholder I find your videos extremely helpful. Could you please post a video on the cladding issue and how to get help with the remediation works. I have absolutely no clue if I have to pay for these works or if my flat is included in the government help. There is no way of finding out this information via my council as no one replies to emails etc. Another issue is extending the lease. How much does it cost all together? I live in a council block of 14 flats which are 2 bedroom. I’m luckily in the ground floor so it’s more or less like a 2 bedroom house. I have roughly about 80 years left on my lease after living here for 24 years. What sort of money am I looking to spend if I want to extend the lease? Also will extending the lease increase the value of the property If I want to move on and sell the lease on?

[@propertyaccelerator]

Sure will take a look for you.

[@silentgirltears782]

@@propertyaccelerator when will This video be coming out ?

[@jed-nw8gf]

Awesome news on my B-Day thanks for bringing it James! Happy Birthday to me! Haha, I have a flat in N London with around 60 yrs lease. Any chance you'd like to share the info to any solicitors you might want to recommend?

[@propertyaccelerator]

Happy Birthday - I use my local solicitor in Dorking, however I called the top 10 solicitors for the search "Leasehold Solicitor".

[@HarryNicNicholas]

at last i might be able to sell my flat. it's hard enough unloading retirement flats, but since this bill has become public no one wanted to touch leasehold, i've been on the market for six years. also i'm in court over admin and legal fees associated with my rent and service charge so this is confirmation that both are deemed unfair. it's taken three years to get to court, just enough time for the law to change - lol.

[@propertyaccelerator]

🙏

[@brightername8801]

Thanks james

[@propertyaccelerator]

My pleasure

[@dpthomas1973]

What about purchasing the Freehold if you own a house? Any difference to this? I was hoping they would cap the cost.

[@propertyaccelerator]

No chance in costs for that sadly.

[@dickjohnsonsixtynine]

I own a house with less than 80 year lease. If I decide to look to buy the freehold will any of these reforms help me?

[@tanyaconnolly4817]

Thank you!

[@propertyaccelerator]

No problem.

[@markanthonyward8978]

Labour have agreed to scrap Leaseholds within 100 days of getting to power? Who thinks they will stick to that promise?

[@edwardhammond5582]

I think it is specific to houses. For blocks of apartments, it makes less sense; it provides a framework for managing the property in behalf of the leaseholders. In fact, without it, many of us would quickly find ourselves longing for the good old days of leasehold and freeholder responsibilities to preserve the value of our properties - I think RTM and RTE is the way to go if you have people willing to put in the effort. As stated elsewhere, there are some real rogues in the property management sector. In our case, the worst rogue even claimed to be a Fellow of the Institute of Residential Property Managers and a RICS Associate. Two FTT cases and a County Court case before we eventually got rid of him and more pending years later.

[@propertyaccelerator]

They already backed down on that.

[@nodrogwarob]

That commitment has been watered down to a promise to look at it during the next parliament. Essentially translated as nothing will happen.

[@m.o.n.d.e.g.r.e.e.n]

can you do a video on right to buy your freehold?

[@propertyaccelerator]

Sure will add it to my list.

[@skeenster]

Will there be an online gov tool suggesting the extension costs?

[@propertyaccelerator]

Yes there will. Once its out I will share it.

[@kunderkenadia]

I have a commercial leasehold property with 76 years remaining. I had been hoping that these leasehold reforms would also be of benefit to me, but it does not seem so . Any comments about commercial leaseholds?

[@propertyaccelerator]

Its only residential property sadly.

[@kunderkenadia]

@@propertyaccelerator Yes that is sad . There never seems to be any mention of commercial leaseholds. Is that right? Thank you for your comment

[@blueslippermusic]

Does Marriage Value only kick in when the lease goes under 80 years? Will the leashold reform make renewing any cheaper for someone with 85 years left etc...

[@scienceevolves4417]

Yes 80 yrs under the current rules. Which is about to change.

[@propertyaccelerator]

It wont be much cheaper for 85 years left, however you will get to extend to 990 years which is much better.

[@williambullard2704]

So it won't make it much cheaper for me to extend my lease. It's below 80 but it will turn it into 990 years

[@andrewvinter7809]

Another great video James-I watch every day. How would you find the legal owners of the other flats in a block. Often rented and tenants don’t know the owner. The letting agents wouldn’t give info to strangers and the management company would want to keep owners apart! Regards Andy Vinter

[@propertyaccelerator]

You can buy the title deeds on land registry for £2 per record. Or just knock doors Ive done that in the past.

[@reteperialc]

Brilliant ! Thanks Will share

[@propertyaccelerator]

Thanks for sharing!

[@ChoppingtonOtter]

I never understood anyone agreeing to buy leasehold. There were always plenty freehold properites on the market.

[@propertyaccelerator]

Most flat are leasehold a lot of people cannot afford a house for their first purchase. But if you had the option always buy freehold I agree.

[@jimbojimbo6873]

Gove is a legend for this

[@simonbeckford3025]

james does the work and gove gets the praise

[@jimbojimbo6873]

@@simonbeckford3025 same with how Tesla and Steve Jobs get all the praise when they didn’t invent anything

[@HarryNicNicholas]

gov is still a little creep - he u-turned on this last week anyway if yo weren't aware.

[@jimbojimbo6873]

Gove haters everywhere

[@spencer2721]

This is a joke right? The bill is watered down garbage and leaseholders will continue to be exploited and get poor value

[@HT_Ray]

Brilliant update!

[@propertyaccelerator]

Glad you think so!

[@annieduncan7062]

I'm still confused as to whether to continue with the section 42. I go to 80 years in July. If I do it now do I still have to pay the freeholders legal fees?

[@propertyaccelerator]

If you do it today you would pay, but nobody knows 100% when this will be an active law. Could be 2 months could be 2 years. What we do know is it is a law and will be passed which is the good news.

[@fje1948]

Thank you for the analysis! Ground rent cap - Perhaps a Labour Government may look at a cap? Hopefully 🤞 Right To Manage - We (block of 9 flats), established our RTM company some 10 years ago and it worked very well ever since!

[@NewModelRailway1]

I'm sure it wouldn't be too difficult to index link ground rents to freehold property values.

[@fje1948]

@@NewModelRailway1 Actually, that would make sense,

[@WheelieMacBin]

A Socialist government should end this utter scam, but as the Labour Party are actually red Tories, I doubt they will do anything.

[@reduitman]

Do you use a managing agent ?

[@fje1948]

@@reduitman No! We established a limited company with the help of a solicitor, with all flat owners being a member and appointed one member as the director.

[@karenpatheyjohns9146]

Hi, very interesting video. I bought my leasehold apartment on 21.3.2022 Brand New off Plot. I am now moving to Canada to be with my children. I put my property on the market, agreed a sale (part cash/mortgage approved) , I paid 900 pounds for HomeGround and FirstPort Management Packs and now the buyers have withdrawn their offer due to being made aware that my apartment is a Non-qualifying Lease due to the Building Safety Act of 2022. This had made my buyers nervous as they may be financially affected in relation I believe to remedial works i.e .around the Fire Certificate. I was unaware of the Building Safety Act 2022 when I bought the apartment and had I known I would not have purchased. It is my only property I own and it doesn't make any sense at all. Can anyone offer any advice at all? thankyou

[@propertyaccelerator]

I would speak to a solicitor to explain it fully to you.

[@antojeyanson]

If you change from lease hold to freehold, do you need to let the mortgage lender know.

[@propertyaccelerator]

You would need to let them know, but it would be a good thing so no issues.

[@antojeyanson]

Very helpful Thank you

[@dgriley7280]

As a freeholder that has a leaseholder above me with 75 years left and a renewal value of £36k Looks like I’ve just lost £18k?…. 😢😢

[@propertyaccelerator]

Could well be that way.

[@commonman131]

We sould be given freehold status.

[@propertyaccelerator]

Problem is then who would pay freeholders.

[@mariemclaughlan5404]

Thanks James you have made it clearer.😂

[@propertyaccelerator]

Happy to help

[@stephenclark6670]

How long before we find out what the calculator for marriage value replacement will look like and when will it start this year or next year?

[@propertyaccelerator]

Great question sadly I dont have the answer, I want it as much as you do.

[@Sam_Green____4114]

Is it going to be cheaper to renew a leasehold then ? Have they abolished Marriage Value ? That's all I'm interested in !! They want 20,000 plus now to renew mine !

[@propertyaccelerator]

Yes and yes

[@davidldn1]

Doesnt make a difference. I have been complaining about service charges increases forever, now all i have is a legal right to complain more, firstport wont doing anything. I am paying £4300 for a 1 bedroom flat.

[@propertyaccelerator]

You will be able to self manage.

[@maclal2099]

The flip side is if the deferment rates are set to below 4%

[@propertyaccelerator]

👍

[@andybellklas1678]

Correct me if I'm wrong but the bill has passed but the commencement date has not been announced meaning none of this applies as yet, a commencement date could be months or even years before we can benefit from it, Then the question is what will labour do once they are in power? Do they want to add to it and bring it back to the government for debate adding more years?

[@scienceevolves4417]

Correct, there will be different dates for different sections and a number of sections will only commence after SoS issues a S.I.

[@propertyaccelerator]

Correct waiting for commencement date.

[@colingourley1222]

As someone who owns a flat in a converted semi detached house some of this new law is devastating. I bought the freehold after the previous freeholder died. It cost forty thousand pounds plus another five or so in associated costs. If the leaseholder of the lower flat wishes to extend his lease my question is this. He is gaining value in his flat while I, as freeholder, will have to finance his increased value by paying for legal costs that he is obliging me to incur. Doesn’t seem equitable.

[@scienceevolves4417]

Why would you have to pay for his lease extension costs?😮

[@scienceevolves4417]

Crucially are you freeholder of the flat only or freeholder of the whole estate?

[@colingourley1222]

It is a semi detached house split into two self contained flats. I’m leaseholder of the upper flat and freeholder of the property. As I understand it, if the leaseholder wants f the lower flat wishes to extend his lease term to 999 years and so increases the value of his flat - why should I have to pay for my legal costs when I am getting no benefit from the exercise? Or have I misunderstood??

[@colingourley1222]

@@scienceevolves4417 I am freeholder of the whole semi detached house containing two self contained units.

[@scienceevolves4417]

@@colingourley1222 Well the leaseholder wishing to extend doesn't increase the value of the flat, only of the Lh title that he owns. As both Fh and Lh owners are both parties to the lease contract, it's only fair they should each bear their own costs. So we used to have an abnormal situation, and they've now restored it as it should be.👍

[@inerit5175]

Not a surprise my THIEVING leaseholders will be charging £60 for reminder letters for payments from June 2024!

[@propertyaccelerator]

👍

[@mariuscotofrea7455]

What abouts the no limitation on renovating a flat? Course without puting the wall down. Anyone??

[@propertyaccelerator]

👍

[@jeremybevan5946]

Looks promising will 990 year lease extensions still have no ground rent then onwards? Freeholders adding money to building insurance and then on top they charge 20% of all the fees as a management cost. I wonder if they will come clean on these charges or carry on as lots of tenants will not know these details of the changes.

[@propertyaccelerator]

👍

[@simonbeckford3025]

Thanks for all your hard work. I really hope they have time to get your peerage through before they leave. Based on these changes, if someone extended with 81 years left and someone extended with 79 years left, would there be any difference? thanks in advance

[@propertyaccelerator]

haha thanks. The costs would now be similar where previously the 79 would be much more expensive.

[@AlexN0me11]

I wonder if the cost will still be extortionate to extend the lease…

[@propertyaccelerator]

It wont be cheap but it will cost a lot less than current prices.

[@chrisohare1992]

Why do you think they are ‘incentivised’ to get you the best deal for insurance? My freeholders insurance is over double the market rate… what incentivises them to get a lower rate?

[@propertyaccelerator]

Exactly no incentive, they have an incentive to get highest quote currently. Moving forward you can manage yourself so they need to toe the line a bit more.

[@123sumom]

Amazing thanks 😊

[@propertyaccelerator]

You're welcome 😊

[@TopGRuler]

I am remortgaging my flat, buying another property and extending my current lease on the flat and I have applied for section 42 to give me a quick response. Should I carry on with the extension? Of my extension is about £60k😢

[@propertyaccelerator]

I would speak to a leasehold specialist solicitor and get an idea how much cheaper it will be.

[@lynnbass708]

But when will the guidance for the law come out, we know that can change how the law is interpreted

[@propertyaccelerator]

👍

[@louiseclynch8735]

Thank you so much 😊

[@propertyaccelerator]

Always welcome

[@TOM-ym1uh]

Hi James, if i extend my leasehold flat from 89 to 990 years do I have to pay grant rent? Thank you

[@scienceevolves4417]

Should turn to Peppa corn.

[@propertyaccelerator]

No ground rent would be removed.

[@jamesagerholm2034]

This is positive.

[@propertyaccelerator]

Agreed.

[@Rapid_GT]

Why is there zero protection for Freehold property owners or any right to challenge ridiculous charges for zero service for maintaining a bit of grass area that I don't live near, don't benefit from and can't even see from my house ! The road I live on is adopted by the council anyway, with any other service you're paying for if you getting no service then that would be a breach of contract

[@propertyaccelerator]

👍

[@Rapid_GT]

@@propertyaccelerator Just a thumbs up 🤣 was hoping for some help but OK

[@gerardcallery3659]

Hi James, can you confirm this Act is now active? Ie, if i extend my lease tomorrow, i can do it for 990 years rather than 90?

[@propertyaccelerator]

No its law but needs to be implemented. Could be a few more months.

[@user-fu3vr6ne1m]

@propertyaccelerator I've been on to some solicitors and they say it could take longer than months and with the imminent General Election we may not see any change until 2026.