As a buyer, seller or landlord you will no doubt of come across leases on properties. A lease is a ‘contract’ between the freeholder and leaseholder of a property. For example, a block of flats may be owned by a freeholder who has allowed the individual flats to be sold to leaseholders (or lessees). Sometimes a block of flats can be owned by the individual leaseholders together giving each flat owner a ‘share of freehold’.
It can be a complex area to understand with lots of technicalities. They dictate what the lessees can, cannot and have to do, such as paying a specified amount of ground rent each year.
When it comes to extending leases (which depreciate annually) it can also be quite complicated. To learn more, we enlisted the help of Niki Adkins from Frettens Solicitors to help guide us through this essential area of understanding for anyone who owns a leasehold property.
Please watch our video below to learn more. We apologise for the occasional loss of audio in the recording.
Following the recording of this video, the proposed Ground Rent Bill has passed a further vote by MPs on setting new build and new lease ground rents at one peppercorn per year.
Commenting on this Niki said -
"We have reported on the proposed legislation previously and it is good to see that it has progressed further in the legislative process. However, whilst it is a good step in the right direction, it should be noted that this legislation unfortunately won’t assist leaseholders who already have high or increasing ground rents. My team and I will of course be reporting on the legislation once it reaches the final stage."
A further article on this topic can be found by clicking on this link.
For more information on this subject you can contact Niki an Associate & Leasehold Specialist at Frettons on 01202 491712.