Lease lengths are being granted at both 990 years and 50-90 years, as only some are honouring the provisions in the Leasehold and Freehold Act.
The act was rushed through parliament in May ahead of the general election, which means there are still grey areas to interpret.
There are concerns that the act’s implementation may be delayed, given that it came from the Conservative government and Labour is now in charge.
Lauren Blackman, partner at solicitor firm Gardner Leader, said: “The market is effectively split, with some choosing to honour the new legislation and issue 990-year renewals or extensions, while many others are looking to secure additional income by only providing 90 and 50 year extensions.
“There are also those in the middle waiting for the final pieces of the legislation to come into effect. The danger here for all parties is that whichever camp they are in, we may be months away from a resolution, leaving everyone in limbo. “
Other changes outlined under the Act include:
• Reduce costs for leaseholders by removing the requirement to pay the freeholder’s expenses when challenging poor practice.
• Allow leaseholders to purchase their freehold or extend their lease immediately after purchasing a lease, instead of waiting two years.
• Prohibit the sale of new build leasehold houses, with some exceptions.
• Remove marriage value (the increase of property value following a lease extension) from the cost calculation for leasehold enfranchisement.
Blackman was writing in a blog published on PropertyWire, which you can read here.
