The Government has reformed legislation around leaseholders meaning they can now extend their leasehold by 990 years with zero rent being charged to them.
For years leaseholders have had to pay ground rent on top of their mortgage, leading some to say they were paying 2 bills on something they own.
Freeholders were also free to increase ground rent with little to no benefits being passed on to those being charged, giving a sense of greediness and opportunism to the laws.
This change in law could allow leaseholders to save thousands, if not tens of thousands of pounds over several years.
Housing Secretary Rt Hon Robert Jenrick MP said:
“Across the country people are struggling to realise the dream of owning their own home but find the reality of being a leaseholder far too bureaucratic, burdensome and expensive.
We want to reinforce the security that home ownership brings by changing forever the way we own homes and end some of the worst practices faced by homeowners.
These reforms provide fairness for 4.5 million leaseholders and chart a course to a new system altogether.”