Last week, the Housing Secretary announced reforms to make it easier for leaseholders to buy their home.
Under the current law many people pay high ground rents alongside a mortgage. Freeholders can increase these rent charges which has little or no benefit to those paying the lease.
The new reform will allow millions of leaseholders the right to extend the lease on their property by 990 years.
Those who choose to extend their lease will no longer have to pay ground rent to the freeholder, enabling people to fully own their home without the additional expenses.
For some leaseholders, these changes could save them thousands, to tens of thousands of pounds.
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.”
I welcome this reform, as it ensures a fairer and more secure option for leaseholders to own their home. I am confident that this measure will certainly benefit constituents in Norwich North, and I would encourage those eligible to consider this.