Our Branches
    County Durham
    County Durham
    County Durham
    T: 01325 728333
    E: codurham@northgates.net
    Avenue House, Suite 3 Greenwell Road, Newton Aycliffe, DL5 4DH
    Teesside
    Teesside
    Teesside
    T: 01642 813222
    E: teesside@northgates.net
    8 Town Square Billingham TS23 2LY
    Get a Valuation
    Register/Maintenance
    LogoLogo
    • Property Search
    County Durham
    T: 01325 728333
    E: codurham@northgates.net
    Avenue House, Suite 3 Greenwell Road, Newton Aycliffe, DL5 4DH
    Teesside
    T: 01642 813222
    E: teesside@northgates.net
    8 Town Square Billingham TS23 2LY
    Home/News/Leasehold reforms: what, when and how explained
    Lettings

    Leasehold reforms: what, when and how explained

    almost 2 years ago
    Leasehold reforms: what, when and how explained

    You may have seen King Charles III officially opening the new session of Parliament in early November. During the pomp and ceremony, the King read out the Government’s main intentions for the 12 months ahead.  

    One Bill that they seek to push through to Royal Assent – that’s when proposals become law – is the Leasehold Bill. It’s part of a long-running campaign to give leaseholders a fairer deal. Homeowners and renters have already been contacting us with regards to changes that may lie ahead, so we’ve answered the most commonly asked questions:  

    Q. Am I a leaseholder?

    A. You’ll most likely be a leaseholder if you pay a managing agent or a landlord ground rent and/or service charges. Many people who own a flat are leaseholders. If you need any clarification, please ask us.  

    Q. Are leaseholds being scrapped?

    A. In some cases. The Bill states that housebuilders will not be able to build houses and sell them with leaseholds in England and Wales. The recommendation stopped short of banning brand new flats being sold with leaseholds. There are no proposals to cancel existing leasehold arrangements, so if you already own a leasehold property, it will stay that way for the foreseeable future.   

    Q. Will there be changes to the number of years a lease can be extended by?

    A. Yes, as the Government wants the standard lease extension term increased from 90 years to 990 years for both flats and houses, which will help protect a property’s future value.   

    Q. I’ve only had my leasehold property for six months, will the changes affect me?

    A. Yes. At present, a leaseholder has to have owned their property for two years to qualify to extend or buy their lease. Under the Bill’s proposals, this timeframe will be scrapped making it easier for all leaseholders to request changes.   

    Q. Are ground rents being abolished?

    A. In some cases, yes. The Bill proposes that when a lease extension is agreed, the ground rent resets and stays at £0. When it comes to existing ground rents, the Government has announced it is consulting on a cap, which will help leaseholders who are subject to ground rent ‘doubling’.  

    Q. I’m a leaseholder in a mixed-tenure, mixed-use building, will I get help?

    A. There are proposed changes for leaseholders who find themselves in this situation. It should become easier to buy the property’s freehold or take over its management in buildings where there is a mix of residential dwellings, shops and offices.   

    Q. Will it be simpler to extend or buy a lease?

    A. The Government does want to simplify the process of buying or extending a lease. One change is setting a maximum time and fee for the provision of information required to sell a leasehold property. If this change is adopted, it may also become cheaper to buy or extend a lease.  

    Q. What other leasehold changes are proposed?

    A. The Government would like leaseholders with complaints to have better access to a redress scheme. Additionally, they’d like better transparency over leaseholders’ service charges and for the presumption that leaseholders should pay their freeholders’ legal costs when challenging poor practice.  

    Q. How soon will we see leasehold changes?

    A. The Government will want the Bill to gain Royal Assent before the next General Election, which must happen before January 2025. The process to adopt a Bill into law can be long winded, involving the House of Commons and the House of Lords, and it can pass from one session of Parliament to another. The Bill can also be amended along the way, so there is no guarantee that the proposals outlined will become law.   

    Q. I am a leaseholder in Wales, will the Bill affect me?

    A. The Welsh Government is pursuing its own set of leasehold reforms, although The Leasehold Reform (Ground Rent) Act 2022 is applicable.  

    Q. Will the Bill change the system in Scotland?

    A. The Bill will not change anything in Scotland and it has its own approach to property ownership, which is more akin to commonhold.  

    If you’re unclear about anything involving a current leasehold arrangement or detailed in the proposed Bill, contact us and we can explain everything in plain English.

    Share this article

    More Articles

    5-year EICR anniversary: important milestone for landlords

    5-year EICR anniversary: important milestone for landlords

    Published 11 days ago
    1 in 3 adults still tempted by buy-to-let

    1 in 3 adults still tempted by buy-to-let

    Published about 1 month ago
    Renters’ Rights Bill: lack of tenant awareness exposed

    Renters’ Rights Bill: lack of tenant awareness exposed

    Published 2 months ago
    More Articles

    Sign up for our newsletter

    Subscribe to receive the latest property market information to your inbox, full of market knowledge and tips for your home.

    You may unsubscribe at any time. See our Privacy Policy.

    Back to Home

    Quick Links 

    Guide to Buying
    Sell your property
    Tenants information
    Let your property
    About us

    Branches 

    County Durham
    Teesside

    ARLA
    DPS
    Guild
    NAEA
    PrimeLocation
    RightMove
    ThePropertyOmbudsman
    TradingStandards
    Zoopla
    © 2025 Northgate Estate Agents
    Privacy Policy|Terms & Conditions|Cookie Policy|Complaints & Appeals Procedure - Northgate Signature LTD|Complaints & Appeals Procedure - Northgate Estates NE LTD|Northgate Signature CMP Certificate|Northgate Estates (NE) CMP Certificate
    Powered by