Joanne Cummings comments on Leasehold Reforms in the Law Society’s Property In Practice
In an effort to fix the leasehold system and level up home ownership, the government’s Leasehold Reform (Ground Rent) Act 2022 (the Act) came into effect on 30 June 2022.
Spencer West Real Estate Partner Joanne Cummings was featured in the Law Society’s Property in Practice ‘Leasehold Reform?’ article discussing the impact the new legislation would have on leaseholders, freeholders and developers.
For freeholders who intend to grant new leases as their ability to charge ground rent will cease Joanne said: “This will create a two-tier leasehold system: for those freeholders and leaseholders who entered into a lease prior to the commencement of the Act and those new freeholders and leaseholders who entered into leases after the Act has come into force. This two-tier system may also exist within the same development. This will ultimately have an effect on the leasehold property market going forward.”