The King’s Speech 2024
The King's Speech 2024
The King's Speech 2024 was delivered by King Charles in the House of Lords on Wednesday 17th July 2024. This article looks at the Leasehold aspects of the speech, from our perspective at South East Leasehold Ltd.
The full details of the speech can be found on the Government website, here .
“Draft Leasehold and Commonhold Reform Bill”
“Draft legislation will be published on Leasehold and Commonhold reform”
The Government will act quickly to provide homeowners with greater rights, powers and protections over their homes by implementing the provisions of the Leasehold and Freehold Reform Act 2024.
The Government will further reform the leasehold system, enacting remaining Law Commission recommendations relating to leasehold enfranchisement and the Right to Manage, tackling unregulated and unaffordable ground rents, and removing the disproportionate and draconian threat of forfeiture as a means of ensuring compliance with a lease agreement.
The Government will take steps to bring the feudal leasehold system to an end, reinvigorating commonhold through a comprehensive new legal framework and banning the sale of new leasehold flats so commonhold becomes the default tenure.
What does the draft Bill do?
- The Government will take steps to bring the feudal system of leasehold to an end and reinvigorate commonhold by enacting remaining Law Commission recommendations to bolster leaseholders’ fundamental rights to extend their lease and buy their freehold (enfranchisement), and take over the freeholders building management functions (Right to Manage).
- Reinvigorating commonhold by modernising the legal framework. We will also restrict the sale of new leasehold flats. The Government will consult on the best way to achieve this, so that generations to come will benefit from absolute homeownership.
- Tackling existing ground rents by regulating ground rents for existing leaseholders so they no longer face unregulated and unaffordable costs.
- Bringing the injustice of ‘fleecehold’ private estates and unfair costs to an end – the Government will consult on the best way to achieve this and implement new protections for homeowners on private estates in the Leasehold and Freehold Reform Act 2024.
- Ending the injustice of forfeiture so that leaseholders are protected against losing savings they have in their home for potentially small unpaid debts.
- In addition, the Government will implement the Leasehold and Freehold Reform Act 2024 so that leaseholders can benefit from more rights, power and protections over their homes.”
Are the proposals good or bad?
The proposals outlined in The King's Speech 2024, so far as they relate to Leasehold, are broadly intended to make life easier and cheaper for leaseholders. Certainly the changes to the length of statutory lease extensions will affect our valuations and we await further details of exactly how the changes are to be implemented.
As with all legislation - the devil will be in the details - so we await the precise changes with interest.
In the meantime, if you have any questions, queries or concerns about how the proposed changes will affect you - please call Simon Brook on 0208 832 9069. He will be pleased to assist.
