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Question for Department for Levelling Up, Housing and Communities

UIN 1261, tabled on 12 May 2022

To ask the Secretary of State for Levelling Up, Housing and Communities, with reference to the Leasehold Reform (Ground Rent) Act 2022, from what date leaseholders will be allowed to extend their lease or buy their freehold.

Answered on

19 May 2022

Under the Leasehold Reform Act 1967 (as amended) and the Leasehold Reform Housing and Urban Development Act 1993, leaseholders have statutory rights to extend their lease and/or buy their freehold. The Government remains committed to transforming the experience of leaseholders by making it easier and cheaper for them to extend their lease and/or buy their freehold.

We announced last year that the length of a statutory lease extension will increase to 990 years, from 90 years (for flats) and 50 years (for houses). Leaseholders will be able to extend their lease with zero ground rent on payment of a premium. We will also reform the process of valuation that leaseholders must follow to calculate the cost of extending their lease and/or buying their freehold. Our reforms will result in substantial savings for some leaseholders, particularly those with fewer than 80 years left on their lease.

The Leasehold Reform (Ground Rent) Act 2022, which comes into force on 30 June 2022, will make homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent. This is the first part of major two-part legislation to implement leasehold and commonhold reforms in this Parliament.