Gov’t to axe leaseholds for new-builds

In an aim to tackle unfair leasehold practices and protect future buyers from ‘exploitative arrangements’, the government have confirmed that all new-build houses are to be sold as freehold and ground-rents on new leases will be reduced to £0. In his speech at the recent CIH Conference, housing secretary James Brokenshire confirmed the plans that will put cash back into the pockets of future home owners. Also, in a bid to stop freeholders and managing agents prolonging the process of providing leaseholders the information they require to sell their home, and charging what they want for it, ministers will introduce a new time limit of 15 working days and a maximum fee of £200+VAT. In addition, it was announced that if buyers are incorrectly sold a leasehold home, they will be able to get their freehold outright at no extra cost. 

Click here to read the press release and here to read the consultation document.