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An update on leasehold laws in the UK

Leasehold laws in the UK have been a hot topic of discussion in recent years. With a growing number of legal disputes and concerns raised by leasehold property owners, the government has taken steps to address the issues and provide better protection to leasehold property buyers. In this blog post, we will provide you with an update on the latest leasehold laws in the UK.

What is leasehold?

Before diving into the recent updates, let’s first understand what leasehold means. Leasehold is a form of property tenure where a buyer purchases the right to occupy a property for a specified period of time, as stated in a lease agreement. The leaseholder, also known as the tenant, does not own the land on which the property is built and instead pays ground rent to the freeholder who owns the land.

The issues with leasehold properties

In recent years, leasehold properties have come under scrutiny due to several issues. Some of the main concerns raised by leasehold property owners include:

  • Rising ground rent: Many leasehold property owners have experienced steep increases in ground rent over time, making the properties less affordable and causing financial difficulties.
  • Onerous lease terms: Some leasehold agreements contain unfair terms and clauses that put leaseholders at a disadvantage. These terms may include costly permissions to make alterations, fees for consent to sell, or limitations on subletting.
  • Lack of control: Leasehold property owners often face restrictions on making changes to their homes or have limited control over maintenance and other decisions affecting their property.

New leasehold laws in the UK

In response to the concerns raised by leasehold property owners, the UK government has implemented new laws and regulations to address the issues and provide better protection. Here are some of the key changes:

1. Ground rent reform

In a significant move, the government has introduced a ban on leasehold houses and plans to restrict ground rents to zero for new leasehold properties. This means that leaseholders will no longer face unexpected increases in ground rent, making properties more affordable and reducing financial burden.

2. Leasehold Extension

The leasehold extension process has also been simplified and made more cost-effective for leasehold property owners. Leaseholders now have the right to extend their lease by up to 990 years, effectively turning their leasehold property into a freehold property.

3. Prohibition of unfair lease terms

To protect leasehold property owners from unfair terms and clauses, the government has taken steps to ban the use of certain onerous lease terms. This includes terms that make it difficult for the leaseholder to either sell or mortgage their property.

4. Regulation of managing agents

To improve transparency and accountability in the leasehold sector, the government has introduced regulations to regulate managing agents. This includes a requirement for managing agents to belong to an approved redress scheme and follow a code of practice.

Seeking legal advice

With the recent changes in leasehold laws, it’s important for leasehold property owners to seek legal advice to understand their rights and obligations. A legal professional can guide you through the process of extending your lease, challenging unfair lease terms, or resolving disputes with managing agents or freeholders.

If you are considering buying a leasehold property in the UK, it’s crucial to understand the implications and potential risks. Before making any decisions, it’s recommended to consult a legal professional who can provide you with the necessary guidance and ensure that the leasehold agreement is fair and favorable for you. You can find more information about buying a leasehold property on our website here.


The recent updates on leasehold laws in the UK aim to provide better protection and rights to leasehold property owners. With reforms in ground rent, leasehold extensions, and the banning of unfair lease terms, leasehold property owners can now enjoy more control and affordability. However, it’s still crucial to seek legal advice when dealing with leasehold matters to ensure you are fully aware of your rights and obligations. Stay informed and make informed decisions to protect your interests as a leasehold property owner.

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