SHOCK Leasehold Reforms Become Law

SHOCK Leasehold Reforms Become Law - Key Part Missing

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Property Accelerator - James Nicholson

Ай бұрын

SHOCK Leasehold Reforms Become Law - Key Part Missing
The UK government has finally passed the much-anticipated leasehold reforms, bringing significant changes to the property market. However, there's a critical element that didn't make it into the final law, leaving many homeowners and industry experts concerned.
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In this video, we'll break down:
What the new leasehold reforms entail
The key part that was left out and its implications
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Пікірлер: 574

@jonathangems Ай бұрын

Many thanks James. Great news! And so unexpected! It's made my day, if not my decade! I am one of five leaseholder living in a house "owned" by a shifty freeholder who has never visited the property and managed by a management company that has never done anything to maintain it, yet imposes whopping service charges. We've been outrageously exploited for almost thirty years. They've made a fortune out of us.

@scienceevolves4417 Ай бұрын

Perhaps you may be aware the service charges will still be a thing. The new Act only says they're supposed to be more transparent and could be challenged in tribunals and LH owner won't pay the other party's costs. All positive changes I'm sure.

@spencer2721 Ай бұрын

The bill is garbage and has been completely watered down. I’m not sure why you seem so pleased you will continue to be exploited by your freeholder unless Labour bring in legislation to do the job properly

@scienceevolves4417 Ай бұрын

@@spencer2721 wouldn't count on it. Pretty much the last thing the LIEbour party cares about is good, honest, hardworking people. "Never underestimate the ability of any gubberment to f things up!" I'm also old enough to remember 97-2010 when Antony bLIAR's administration has pretty much torn apart and very nearly destroyed this once great country.

@propertyaccelerator Ай бұрын

Great win for you glad to hear it.

@davido4425 Ай бұрын

Rip off UK !! Leasehold doesn't exist in France ! No chance ! They'd hit the bloody streets

@suededogs9670 Ай бұрын

I can't wait for the council to cough up some refunds! We pay them £1,200 a year service charge for what is basically a shit hole.

@propertyaccelerator Ай бұрын

👍

@cocosheffield79 Ай бұрын

I live in one of these terraces in Sheffield which is leasehold with missing landlord. These reforms don’t really help people like us but I’m happy that people in flats will benefit and not get massively ripped off with increasing ground rent and crazy management fees

@propertyaccelerator Ай бұрын

🙏

@edwardhammond5582 Ай бұрын

Ground rent is spelled out in your lease; agreeing to pay it is part of what you signed up for when you bought. Management fees... yes, you can be mugged. I hope that gets fixed.

@viviant701 Ай бұрын

I am in the same situation.

@choiceweddings01 Ай бұрын

They needed to get rid off service charges🤬

@scienceevolves4417 Ай бұрын

And the rationale for that would be what? 🤔

@spencer2721 Ай бұрын

Or cap them at a certain amount, leaseholders should be able to pay a smaller amount for a minimum service level, at the minute they are just exploited by freeholders, management companies & service companies who have got into the leasehold sector as it so lucrative and they are pretty much allowed to charge whatever they want

@mandrake-34- Ай бұрын

Or at least only charge it if they're actually providing a service. Say a block of flats where the grounds are legitimately maintained.

@scienceevolves4417 Ай бұрын

Mr Spencer and Mandrake I believe that's what the new statute is aimed to tackle. Full transparency means service charge will have to be justified by the LL. Otherwise it may be grounds for challenge. Question is as usual, will people want to go thru the hassle?

@SilverWong-yo5iu Ай бұрын

A better way, in Hong Kong, is all apartment owners in the building of estate form an Owners' Corporation which collects and manages the fund for maintaining the whole building/estate and the employment of security guards, cleaners or paying companies to provide the above manpower. The income and expenditure record is more transparent in most cases.

@HarryNicNicholas Ай бұрын

i'm pretty sure management companies get kick backs from people who do shoddy repairs then have to repair their repairs.

@spencer2721 Ай бұрын

Goes in all the time, a crap quality of work things break time and time again, and the leaseholders have to pay time and time again, it’s a scandal robbery by any other name

@propertyaccelerator Ай бұрын

100% they do. This will help stop that.

@paulmurphy63 Ай бұрын

Thank you James! - Been waiting for this video. you talk the language people understand!

@propertyaccelerator Ай бұрын

Thanks Paul

@leewellstead2305 Ай бұрын

Thanks James for another information packed video on property. Keep the good news coming.

@propertyaccelerator Ай бұрын

No problem

@abdoboul1575 Ай бұрын

Thank you james. The best news so far🎉🎉🎉

@propertyaccelerator Ай бұрын

No problem

@elsamaria1914 Ай бұрын

Great news and thank you for your explaining the ups and downs regarding leasehold property.

@propertyaccelerator Ай бұрын

Any time!

@lily_m3538 Ай бұрын

Part of a RTM company with five flats. Three of the leaseholder's band together, knock back any improvement ideas, and are slow on performing essential maintenance so that it costs more in the long run. They don't want to invest in anything and use their buddy to do most of the management. A nightmare. Please do a video on RTM - especially what to do when it doesn't work.

@propertyaccelerator Ай бұрын

It can be a total nightmare for sure.

@user-rx4mm9el4n Ай бұрын

This is a great overview, thanks James!

@propertyaccelerator Ай бұрын

Thanks so much.

@user-rx4mm9el4n Ай бұрын

@@propertyaccelerator I have a sense that most freeholders will try to delay as much as possible, particularly in the instance of marriage value. To your point though, it's worth getting in touch with them early and see if you can push through an early deal, particularly if it's now when and not if...

@simeonbrookstone350 Ай бұрын

Ive been going insane with the abolishment of marriage value today, with some sites reporting that final clauses kept it in! Thanks for clarifying....now we just need the secondary legislation to support.

@propertyaccelerator Ай бұрын

👍

@Andrew-gb4hj Ай бұрын

I was the same! so many sites were saying marriage value was excluded

@lovejetfuel4071 Ай бұрын

I think it was an amendment that was tabled by some tory scumbag, that was then thrown out, but somehow was kept in news articles

@hannahh6618 Ай бұрын

Well done the Tories

@dianegrandison1331 Ай бұрын

Great news.Thank you for breaking down this new Leasehold Reform Act.

@propertyaccelerator Ай бұрын

Any time!

@keithbroad7501 Ай бұрын

So by abolishing ‘Marriage Value’ altogether, would I be right in thinking that the old ‘80 year’ deadline to avoid paying it ceases to even be a relevant concern any longer & leaseholders can legitimately wait now until whenever they can afford to extend the lease on their property by 990 years & maybe even delay doing this until just before they intend to sell their property & thereby wait until that time to increase its value? 🤔

@propertyaccelerator Ай бұрын

Yes in future it wont have an impact at 80 years.

@thenorthstar311 Ай бұрын

Thanks James really appreciate this

@propertyaccelerator Ай бұрын

🙏

@margaretfleming3554 Ай бұрын

This has been most useful, thank you!

@propertyaccelerator Ай бұрын

Glad to hear it!

@puilau2287 Ай бұрын

Thank you, very well informed

@propertyaccelerator Ай бұрын

Thanks so much.

@HT_Ray Ай бұрын

Brilliant update!

@propertyaccelerator Ай бұрын

Glad you think so!

@viviant701 Ай бұрын

Thank you for sharing your knowledge❤

@propertyaccelerator Ай бұрын

No problem

@knowbs2122 Ай бұрын

The other racket is , freehold more than 5 properties and you can become your own insurance company , Therefore double billing , bill the Leaseholder and bill the insurance Co,

@propertyaccelerator Ай бұрын

👍

@gilliancorkhill5480 Ай бұрын

Thank you for this vital information.

@propertyaccelerator Ай бұрын

Glad it was helpful!

@123sumom Ай бұрын

Amazing thanks 😊

@propertyaccelerator Ай бұрын

You're welcome 😊

@tanyaconnolly4817 Ай бұрын

Thank you!

@propertyaccelerator Ай бұрын

No problem.

@reteperialc 21 күн бұрын

Brilliant ! Thanks Will share

@propertyaccelerator 21 күн бұрын

Thanks for sharing!

@fluffy-puffy-puppy Ай бұрын

Thanks for this lots of positives, although not perfect. I might hold off desperately selling my flat to see how this plays out.

@propertyaccelerator Ай бұрын

👍

@stuartgunn8745 Ай бұрын

Great video, thank you for sticking at this and explaining it so well, 👍 Thank you to Gove and the Tories, for atleast one good thing they have completed, Just need the interest rates to fall now and they get my vote.

@scienceevolves4417 Ай бұрын

Hell yeahhhhh, Lovey dovey govey has redeemed himself after 20 years of total ineptitude and incompetence whilst sat in parliament. "Every generation has its own Christ" comes to mind!

@propertyaccelerator Ай бұрын

It seems they have had a massive surge in the polls in the last few days. I wonder how much is down to this.

@scienceevolves4417 Ай бұрын

This guy both cracks me up & infuriates me with his whiteboard space management. Wouldn't it be easier to start typing from the left hand side I wonder? 🤔 If you gave him a cuppa, would he drink it from an upside down position?🤔

@FinancialHealth-ku1ry Ай бұрын

Or invest in a smart board?

@scienceevolves4417 Ай бұрын

@@FinancialHealth-ku1ry smart idea 🙂

@LesleyMcLauchlan Ай бұрын

Yet he manages complete each list without going off the edge of the board. I find it intriguing and like his individuality!

@Rapid_GT Ай бұрын

And what would happen being right handed if he was to do that ? Have a think 😉

@davidellis279 Ай бұрын

About time these robbers were brought to boot,it’s scandalous that you can buy a property and yet not own the land it stands on,this is just another rip off by the builder who buys the land and then profits from it for hundreds of years.

@lidahamedani8055 Ай бұрын

Thank you 🤩

@propertyaccelerator Ай бұрын

You’re welcome 😊

@edwardhammond5582 Ай бұрын

The problem property management Company wasn't Common Ground Estate and Property Management, by chance? They're shockers. In fact, we had to take them to court to get service charge funds back.

@propertyaccelerator Ай бұрын

Its a lot of companies.

@richfroggatt2452 Ай бұрын

Great news James, i believe it's going to be easier to buy the freehold too.

@propertyaccelerator Ай бұрын

Yes much easier and cheaper.

@alexjames7106 Ай бұрын

How will it be cheaper exactly?? Do you also know how the calculation is now cheaper to extend a lease too? Thanks! 😊

@richfroggatt2452 Ай бұрын

@@alexjames7106 nobody knows the calculations yet, but the act states that it will be easier and cheaper to extend or buy the freehold. That part was unchanged from the bill.

@tony-mc1py Ай бұрын

Great video v helpful! Can you do a video on what was not changed and we should keep an eye out for ?

@propertyaccelerator Ай бұрын

Sure

@louiseclynch8735 Ай бұрын

Thank you so much 😊

@propertyaccelerator Ай бұрын

Always welcome

@Alexxx---101 Ай бұрын

Lovely jubbly, I bought a flat based on the rumor of abolishing marriage value a couple of years ago for a massive discount, the lease was 60 years and the guy couldn't sell it. That will be going up for sale soon then 😁

@scienceevolves4417 Ай бұрын

And nobody will buy from you!! 😂😂😂😂😂

@Alexxx---101 Ай бұрын

@scienceevolves4417 Well that's bullsh*t

@22448824 Ай бұрын

@@scienceevolves4417 Always good to read a highly informed comment like this one.

@propertyaccelerator Ай бұрын

👍

@Ash-xi1hr Ай бұрын

Guy goes to comment section without watching the video..

@davidhookway514 Ай бұрын

Was in a flat some years ago with a 900 plus year lease. We all purchased the Freehold of the Block between us very cheaply. I think it was called 'Common Hold'.

@scienceevolves4417 Ай бұрын

A process known as collective enfranchisement.

@propertyaccelerator Ай бұрын

Yeah thats a smart thing to do if you all get along.

@SilverWong-yo5iu Ай бұрын

Is Common hold the same as share of freehold?

@scienceevolves4417 Ай бұрын

@@SilverWong-yo5iu for all intents and purposes yes. You're a Fh owner-occupier for your own little space say a flat. Plus getting an equal share of Fh ownership on par with others on the land and common areas of the building.

@brightername8801 Ай бұрын

Thanks james

@propertyaccelerator Ай бұрын

My pleasure

@sfarhan147 Ай бұрын

Thank you, James, for distilling the information and making it easily digestible

@propertyaccelerator Ай бұрын

My pleasure.

@mattanderson6672 Ай бұрын

Thank you

@propertyaccelerator Ай бұрын

You're welcome

@FatEd1357 Ай бұрын

Management fees will just go up to make up for the lost fees from commission and marking up maintenance costs presumably. At least there will be proper transparency though.

@propertyaccelerator Ай бұрын

You have the right to manage, so if you dont like the fees manage yourself with other leaseholders.

@inerit5175 Ай бұрын

My leaseholders have just sent a letter saying they will charge £60 for payment reminder and £2000 for solicitor fees for lack of payment! They will find a way!

@bye-72 Ай бұрын

Great news, I’ve got 83 years left on my lease.

@propertyaccelerator Ай бұрын

👍

@karendivine6113 Ай бұрын

Thank you so much

@propertyaccelerator 29 күн бұрын

No problem

@andybellklas1678 Ай бұрын

I put my final offer in yesterday on a short lease (50years) ill hear back today i hope they arnt going to reject it now knowing this deal just got alot more valuable for me

@yusufhussain-th1ru Ай бұрын

No lad. I'm afraid it just got a lot more valuable for them.

@scienceevolves4417 Ай бұрын

What dyou mean "final offer"? Don't you have another 50 years left to make more offers?

@propertyaccelerator Ай бұрын

They might not have the cash to extend the lease anyway. But yes get the deal done fast!

@deloressangster6309 Ай бұрын

Thank you James this is wonderful news especially about the marriage value now i can sell my flat and get a decent price Hooray!!!

@propertyaccelerator Ай бұрын

🙏

@Tallisper Ай бұрын

The new reform hasn't met my expectations. While it has made some improvements, leasehold still exists in a different form. A form that may be amended again in the future for the better or for the worse. Fortunately, I hold both British and European citizenship, which makes it easier for me to buy a property abroad. I would have preferred to invest in the UK, but even with these reforms, it's still not enough. Leaseholders remain too entangled with various obligations and external contractors. I'd rather buy a flat in a condominium where I own it outright.

@spencer2721 Ай бұрын

I completely agree leaseholders will continue to be exploited and charged a lot of money so these management companies, freeholders & service companies can make a lot of money from the less well off, the system is completely wrong and this does little to change it

@propertyaccelerator Ай бұрын

But if you just took the freehold from someone in law they have human rights. So they would need to get paid which would cost the government billions. You would then pay more tax so we all pay either way.

@Tallisper Ай бұрын

Pension funds, mutual funds, investment funds, corporations, banks, etc., have all acquired the right to cash flow from ground rent on multiple properties or own the freehold to generate cash flow through management firms. Leaseholders should be given the right to pay off 100 years of ground rent in advance to acquire the freehold right over the property they previously bought as a leasehold. For example, if you pay £400 a year, then multiply it by 100 = £40,000. This is the amount you should pay to acquire the freehold. This would allow pension funds, mutual funds, investment funds, corporations, banks, etc., to reorganize their portfolios without facing the shock of losing money. This will never happen because the government is colluding with these bodies, which pump money into political parties to pursue their own agendas. To me, it's utterly ridiculous that people have to fight to rightfully own something they've spent hundreds of thousands of pounds on. Between leasehold and renting, renting is better. At least with renting, you retain some flexibility of movement without having to pay decades of rent in advance. In both cases, you own nothing. In conclusion, leasehold is just hybrid communism in a free capitalistic market. The issue has nothing to do with money, it has to do with power through ownership.

@LP-qz9ky Ай бұрын

Bad news about ground rent....such a rip off

@propertyaccelerator Ай бұрын

But if you extend your ground rent goes to zero anyway.

@daljeetghag3321 Ай бұрын

Issue is the doubling clause, renewing is very costly

@scienceevolves4417 Ай бұрын

@@daljeetghag3321you realise there's a thing called inflation? I don't suppose doubling of rent over 10 years is an onerous clause although it would be helpful if this were better regulated. Having said that, most ground rents are costing several hundred pounds per year. So even with the doubling clause, it will take decades before that ever becomes an issue. Maybe your grandchildren are gonna really have to worry about that, but chances are that by then someone will have extended the lease and sorted it all out.

@edwardhammond5582 Ай бұрын

Why complain about ground rent? You should have been aware of it before you signed up to willingly pay it.

@truthseeker7612 Ай бұрын

@@propertyacceleratorExcuse my obvious ignorance but how does extending bring our ground rent to zero.

@johnbell1859 Ай бұрын

Thanks James, still a bit of digging to be done I guess. But it’s much better than it was. 🇬🇧

@propertyaccelerator Ай бұрын

Yes its pretty good news.

@Rick-xp5sy Ай бұрын

Always challenge things you feel aren’t right or unfair, always.

@propertyaccelerator Ай бұрын

Correct

@GeordieFX Ай бұрын

Great summation of the changes James, thank you and well done! Do you happen to know if they have changed the premium the landlords can charge if they agree to a lessee's building extension e.g. extending a ground floor flat or maisonette?

@propertyaccelerator Ай бұрын

I dont think that is covered in this bill sadly.

@GeordieFX Ай бұрын

@@propertyaccelerator OKay and thanks for your reply.

@andrewvinter7809 Ай бұрын

Another great video James-I watch every day. How would you find the legal owners of the other flats in a block. Often rented and tenants don’t know the owner. The letting agents wouldn’t give info to strangers and the management company would want to keep owners apart! Regards Andy Vinter

@propertyaccelerator Ай бұрын

You can buy the title deeds on land registry for £2 per record. Or just knock doors Ive done that in the past.

@ilianalouka8648 Ай бұрын

James thanks for the content😊 When is this law valid? interested to find out the effective day

@propertyaccelerator Ай бұрын

Nobody knows for sure, could be 2 months or next year. Depends on any legal challenges.

@22448824 Ай бұрын

This is great news. Especially about the marriage value. I have 5 flats all less than 70 years left on the lease. What I’d like to know is what has changed. A few weeks ago you did a video of how all significant changes to leases were being dropped.

@HarryNicNicholas Ай бұрын

i paid £5000 to extend and another £900 to cap rent, that was five years ago, now i have to do it all over again....

@propertyaccelerator Ай бұрын

Nice work that will save you so much money.

@pavelssinajevs6886 Ай бұрын

Thanks for the video. How much was is it to extend the lease before the changes and how much is it after. I understand it can depend on many things. But still.

@propertyaccelerator Ай бұрын

We are waiting on the full details on this.

@MrAvant123 25 күн бұрын

Bought a flat for my daughter in SW London 2 months ago -- so this is a huge plus for her. Frankly I'm amazed the tory chums in the Lords allowed this to go through -- given many of them are huge landlords !

@propertyaccelerator 22 күн бұрын

Yes it was a surprise.

@nickyes783 Ай бұрын

Super important to note that the act received royal ascent on 24 May, and so is law now! Great news. Could have been better, but still really good progress.

@propertyaccelerator Ай бұрын

👍

@scienceevolves4417 Ай бұрын

It is and it isn't law. Sort of like Schroedinger's law at the moment. The only parts with a confirmed commencement date are the amendments to the Building Safety Act 2022 which will kick in from 24 July 2024.

@lhefe85 Ай бұрын

Hey, thanks for the video. What's the criteria for RTM?

@propertyaccelerator Ай бұрын

Majority of leaseholders agreeing.

@skeenster Ай бұрын

Will there be an online gov tool suggesting the extension costs?

@propertyaccelerator Ай бұрын

Yes there will. Once its out I will share it.

@jed-nw8gf Ай бұрын

Awesome news on my B-Day thanks for bringing it James! Happy Birthday to me! Haha, I have a flat in N London with around 60 yrs lease. Any chance you'd like to share the info to any solicitors you might want to recommend?

@propertyaccelerator Ай бұрын

Happy Birthday - I use my local solicitor in Dorking, however I called the top 10 solicitors for the search "Leasehold Solicitor".

@simonbeckford3025 Ай бұрын

Thanks for all your hard work. I really hope they have time to get your peerage through before they leave. Based on these changes, if someone extended with 81 years left and someone extended with 79 years left, would there be any difference? thanks in advance

@propertyaccelerator Ай бұрын

haha thanks. The costs would now be similar where previously the 79 would be much more expensive.

@chrisdickinson4576 Ай бұрын

Marriage Value abolition is great if you are a cash buyer looking to snap up a short lease property, extend the lease and flip it.

@propertyaccelerator Ай бұрын

I agree a few people will be doing that strategy.

@annieduncan7062 Ай бұрын

I've just instructed my solicitor to issue the section 42 because they have said its in my best interest to do it before the 80 years as they have looked over the changes. Now I'm wondering if they are worried they are losing my money to get it sorted and im being used!

@propertyaccelerator Ай бұрын

Annie they are correct it is best to do this before 80 years. They have to act as if they might never happen as their job is to act in your best interest. I would speak to 3-4 leasehold specialist solicitors and see what they suggest for your specific case.

@RickyHardie-mm2fh Ай бұрын

Thanks James . Great video . When you say it’s not fully in place yet as needs to be signed off but you are finding people are agreeing to the new terms,does this apply to the two year rule? Or will this to wait to come into affect? Thanks

@propertyaccelerator Ай бұрын

You can agree anything on an informal basis. So if you read the bill in full and present that to the freeholder make it simple. Say look this is law and going to pass you can have the money on these terms today or wait. Most will go for it.

@RickyHardie-mm2fh Ай бұрын

@@propertyaccelerator ok wicked, couple of properties in auction which I like the look of but bit of a risk if they don’t agree. As would need to buy with a bridge, as you say hopefully they agree and not silly

@mariemclaughlan5404 Ай бұрын

Thanks James you have made it clearer.😂

@propertyaccelerator Ай бұрын

Happy to help

@kunderkenadia Ай бұрын

I have a commercial leasehold property with 76 years remaining. I had been hoping that these leasehold reforms would also be of benefit to me, but it does not seem so . Any comments about commercial leaseholds?

@propertyaccelerator Ай бұрын

Its only residential property sadly.

@kunderkenadia Ай бұрын

@@propertyaccelerator Yes that is sad . There never seems to be any mention of commercial leaseholds. Is that right? Thank you for your comment

@kingdoridori2460 Ай бұрын

Gread video! Does ground rent still get wiped out or become peppercorn rent when the lease is extended?

@propertyaccelerator Ай бұрын

Yes it does.

@stephenclark6670 Ай бұрын

How long before we find out what the calculator for marriage value replacement will look like and when will it start this year or next year?

@propertyaccelerator Ай бұрын

Great question sadly I dont have the answer, I want it as much as you do.

@NewModelRailway1 Ай бұрын

I don't like to tell you how to do your job James but Right To Manage should've been far nearer to the top of the list.

@scienceevolves4417 Ай бұрын

Well the right to self govern and self manage property is basically a cop out idea off commonhold (CH) system - very popular in continental Europe, but very little known and little used in England. So they might as well get rid of the not fit for current standards LH system altogether and switch all these interests in the land to CH. This would provide for less extortion and far greater security of tenure. Main difference of course being that under LH the owner of the lease is subject to and reliant on the will of the FH owner, while under CH each one is the outright owner of their own piece and a joint owner on par with the others of the common piece. Sounds like a solution when it comes to flats.

@propertyaccelerator Ай бұрын

😂🙏

@andybennett9296 Ай бұрын

Great news although not perfect news. You mention that the marriage value has been scraped and mention that the total cost could half. I was under the impression that MOST of the cost in extending the leasehold was the marriage value. Therefor wouldn't the cost deduction be a greater percentage? Once you take away the marriage value and paying their legal fees, what actually is there left to pay for and how is that calculated??? Last year I was quoted 38.5K to extend my leasehold plus £1500 for their legal costs. Total 40K plus my legal expenses. I worked out that there was approximately 80K profit in the property so I presumed most of their fee was the marriage value which I believe is calculated as 50% of the profit. I would love to know an estimate of what i would be expected to pay now. Surely it should be 70% to 90% cheaper?

@propertyaccelerator Ай бұрын

There are still some hefty costs extending without marriage value. Use this calculator and put in dates that dont have marriage value to get an idea. www.lease-advice.org/

@thecomingman1591 Ай бұрын

How will we know if the management company has got the best insurance deal? Who monitors or checks? Will any fee charged to landlords for setting up the insurance compensate for the loss of commission on insurance? I doubt whether any of this will lower management fees for the Landlord. I believe the law may not come into effect until next year.

@propertyaccelerator Ай бұрын

We dont know, but we can now ask did they receive commission.

@speakenglishclearly9457 Ай бұрын

Great videos, James. Thank you. With the new 990 year lease extension, would that mean that ground rent for this 990 year lease becomes a peppercorn?

@scienceevolves4417 Ай бұрын

Indeed.

@propertyaccelerator Ай бұрын

Yes if you extend ground rent is already a pepper corn.

@auntsally7790 Ай бұрын

Who'd have thought it the 'Charities' but the brakes on it. Ironic as many ground rents were initially a 'peppercorn' rent. The Housing Associations and Charities are now big businesses serving their own interests. The problem is that they can also evict and repossess peoples properties much more easily.

@propertyaccelerator Ай бұрын

And the Church Of England had a big say.

@simsimsim4722 Ай бұрын

The Ebook download link doesn't work, the link down below takes to a data collection page where I inputted my details and signed a consent to get text message and nothing after that... doesn't direct to a download site or link. Is this to get more subscribers?

@propertyaccelerator Ай бұрын

Check your spam, promotions on your email it will be there. If not please email hello@property-accelerator.co.uk and we will forward to you.

@immicrypto3634 Ай бұрын

What about apartment blocks that have failed fire proof cladding that are below the regulatory height? Trying to sell them is difficult as banks refuse a re/mortgage although they are below the advised height of the building.

@propertyaccelerator Ай бұрын

This wont impact that, this is another matter the government need to work on.

@sharongood8133 Ай бұрын

Hey James, this is all so helpful but Im wondering if you can advise on something. I went to the gov. website to use the lease extension calculator but its still showing extensions for flats as 90 years with a side note mentioning this is currently subject to reform, I thought these reforms were now law, have I misunderstood ??

@propertyaccelerator Ай бұрын

Hey Sharon its a bit confusing, its law but it now needs to be worked out when the law is implemented. That is likely to be between 2 months to 12 months. So as of right now the old rules still stick. When the calculator etc is updated will let you know.

@sharongood8133 Ай бұрын

Thanks James, really appreciate your fast response, my lease has only 65 years left and I was dreading the "marriage value", I'm totally clueless, had no idea my fully paid for property was not actually mine and I never heard of marriage value until I recently looked into getting an extension .... I think the info you are sharing is more helpful than you can ever know

@dpthomas1973 Ай бұрын

What about purchasing the Freehold if you own a house? Any difference to this? I was hoping they would cap the cost.

@propertyaccelerator Ай бұрын

No chance in costs for that sadly.

@Project321_ Ай бұрын

Any reasonably priced solicitors you can recommend for lease extension ?

@propertyaccelerator Ай бұрын

Try Cunningham Eves in Dorking say I sent you. Good price but more importantly a small firm you can speak to them easily.

@Project321_ Ай бұрын

@@propertyaccelerator 🙏

@m.o.n.d.e.g.r.e.e.n Ай бұрын

can you do a video on right to buy your freehold?

@propertyaccelerator Ай бұрын

Sure will add it to my list.

@Cha1bs Ай бұрын

I wonder how this will affect leasehold property prices. It'll push them up a tad, I expect.

@propertyaccelerator Ай бұрын

I agree prices will go up.

@davesilveston Ай бұрын

Hi James, could you give me some intuition regarding a lease extension. The freehold is with the Council and there is also a headlease. I began a leasehold extension late last year and the council was late replying to the section 42 notice. The headlease want to be treated seperatley from the freeholder. As you are aware I have to pay all the legal fees for both parties. The premium has been agreed by the freeholder for a 90 year extension (80 years remaining until September 2024) should I try and negotiate (via my solicitor) a better deal ie 990 year lease and reduction in their legal fees as they defaulted the 8 week response to the section 42 notice?

@propertyaccelerator Ай бұрын

Yes I would try to negotiate a better lease for sure. Or pause until this is live so you can get the benefits.

@KAISERDJG Ай бұрын

my local council have a charge on my property because its ex council . the previous person bought it RTB and now theres a charge on it saying in future the coucil "could" charge me ground rent on a property and land i own???? if i own the land and the house, what give the council right to charge me anything??? its nothing to do with them... every time i switch providers on my mortgage i have to pay the council 70 quid just to notify them and they have bloody no rights over my house!!!! i dont know whther to take them to court or not because i dont get the legality of it... i dont understand how someone else buying the house off the council and then me buying it off them means the council have anything to do with it anymore.... they sold it... what right do they have.

@scienceevolves4417 Ай бұрын

Confusing. Did you buy Fh or Lh title? Either way I'd seek legal advice on it.

@propertyaccelerator Ай бұрын

Im not sure how that works, I would contact a solicitor for clarity.

@KAISERDJG Ай бұрын

@@scienceevolves4417 its freehold, but the council say they reserve the right to charge "freehold service charges" which makes no sense because i pay council tax for my area improvements so what exactly are they going to charge me for ??? theres no other restrictions involved and they have a hand in my pocket each time i switch lender on a private owned property and land... it infuriates me

@silentgirltears782 Ай бұрын

What about help with the cladding issue I have a two floor ground floor flat and I am not working. Our claddings been ripped off due to safety issues but no one is telling us who will be responsible for the remediation work. I’ve got chronic health issues with anxiety and depression long term And this hanging over my head is making my health so much worse.

@propertyaccelerator Ай бұрын

Cladding is not included in this bill but they might have others coming.

@amitdasor6171 Ай бұрын

If i may ask, do you know when this law takes effect. Does this apply for all property types, new and exisiting old? For example l, i have property with a lease on it for 85 years and i want to extend to 990, can i request it now, without tlany challenges. Is this change avtive now.

@propertyaccelerator Ай бұрын

Should be just after election.

@Yonaish123 Ай бұрын

How do we challenge the council on the service charge and their management of the block? Two years ago I was paying £50 per month, last year they start charging £99 per month and this year £140.88 per month ! It's unbelievable the way they increased prices. How can I deal with this ? Do I have to get a lawyer ? I bought the flat on right to buy scheme, more than 15 years ago and back then the service charge and ground rent were minimal, now it's an absurd.

@RiaDonita Ай бұрын

Maybe try to rally those in your position together and have a meeting about it then decide how you’ll write a formal complaint to your council.

@propertyaccelerator Ай бұрын

You can self manage if you get other leaseholders to agree or at lease the majority of them.

@mariuscotofrea7455 12 күн бұрын

What abouts the no limitation on renovating a flat? Course without puting the wall down. Anyone??

@propertyaccelerator 7 күн бұрын

👍

@planetliquidful Ай бұрын

Great video James. How much impact will this have on the valuation of flats? I am in the process of selling a 2 bed maisonette with a 94 year lease. Would it be worthing taking it off the market extending to 990 years and re-listing?

@propertyaccelerator Ай бұрын

I think over 3 years this will increase value by 5-10% on top of any increases they would have already had.

@jeff4907 Ай бұрын

You mention the abolition of having to pay the Landlord's Legal fees on lease extension, I don't think this is correct. The Government's website only refers to the abolition of having to pay Landlord's fees when challenging unfair practice and 37(19B) and 37(19C) of the Bill seem to state that in most cases the tenant will still be liable for the Landlord's costs.

@propertyaccelerator Ай бұрын

It is in the full bill.

@jeff4907 Ай бұрын

@@propertyaccelerator Can you confirm where. The bill states that the purchaser will be responsible for landlords costs for successful claims. There are then limits on this but the liability is still there.

@Sam_Green____4114 Ай бұрын

I have to pay 107 per month service charge now, just for someone to come every TWO weeks and hoover the small entrance hall and stairways and communal areas and pick up some leaves outside ! It used to be every week until all the tenants had a vote to make it every two weeks because the leaseholder promised to reduce the charge if we did ! Guess what ? The amount stayed the same after they started doing it every two weeks ! It was only reduced when I phoned up to complain !! Then it didn't stay reduced for very long !! It went up from 72 pounds a month !

@propertyaccelerator Ай бұрын

👍

@scienceevolves4417 Ай бұрын

Ah yes, the delights of the service charge!😅

@gojo2194 Ай бұрын

Charles needs to free up all leasehold imo asap

@propertyaccelerator Ай бұрын

👍

@domcole4362 Ай бұрын

Hi Good vid but? Will the marriage valuation be calculated, and then discounted by 50% ?????????????

@propertyaccelerator Ай бұрын

No it will be removed, there is still a cost to extend even if you dont have marriage value.

@frze5645 Ай бұрын

How about cutting your whiteboard into two parts and put the left hand side (that you never use) on the right of the right side and give yourself a full board on which to write? ... or start writing on the left hand side. Just saying.

@propertyaccelerator Ай бұрын

👍

@yvettecunningham128 Ай бұрын

Hi James, I hope you're well. Thank you, that's great news the leaseholder reform has passed. I have a shared ownership property, the lease is 79 years. What does this mean for shared ownership properties? Many thanks

@scienceevolves4417 Ай бұрын

Co-ownerships are Lh titles ex definitione so will be covered by the new Act. Obviously you'll have an option to extend your own share only to 990 years.

@propertyaccelerator Ай бұрын

You will be covered by the same rights so this is great news for you.

@yvettecunningham128 Ай бұрын

Thank you James, that's great news. Shared ownership will be more complex for lease extension. As lease for 990 years will only apply, as I'm lead to believe if you staircase 100%. Would you have an idea, how this will lease extension will work for shared owners ? Many thanks

@annieduncan7062 Ай бұрын

I'm still confused as to whether to continue with the section 42. I go to 80 years in July. If I do it now do I still have to pay the freeholders legal fees?

@propertyaccelerator Ай бұрын

If you do it today you would pay, but nobody knows 100% when this will be an active law. Could be 2 months could be 2 years. What we do know is it is a law and will be passed which is the good news.

@bye-72 Ай бұрын

How will they work out how much it is to extend your lease. I’ve heard there will be a online calculator which works out the cost.

@propertyaccelerator Ай бұрын

Correct a new calculator will be up.

@bye-72 Ай бұрын

@@propertyaccelerator great, thanks for your help.

@dtek1832 Ай бұрын

Thanks for the informative breakdown! Do you think labour will be able to change this act any time soon if they were to be elected?

@propertyaccelerator Ай бұрын

If they get elected they will make it stronger for leaseholders. But they would be starting from scratch so it would take 3-4 years.

@dtek1832 Ай бұрын

@@propertyaccelerator thanks for the response… I still remember posting about your cool Jordan jumper.. many subscribers ago…haha so happy to see your channel growing!

@miacat1727 Ай бұрын

Leaseholders have always had the right under the Landlord Tenant Act, to challenge Service Charges, using FTT if necessary, so not sure of what respect this Reform has made any difference.

@propertyaccelerator Ай бұрын

It be easier (Waiting for them to say how) but the more public knowledge around this the more management companies will comply.

@neillyboy3123 Ай бұрын

You are a legend for presenting this priceless package of information, thank you James 🎉

@margaretgoodwin7945 Ай бұрын

Thank you for your help and guidance God's blessings to you and yours

@propertyaccelerator Ай бұрын

My pleasure.

@adamwyn-jones9731 Ай бұрын

Hello James. Thank you for another great video. Just one question - when will this law be implemented? I have 81 years on my lease and im going to be extending asap. I really don't want to miss out on getting the 990 years extension. Ta

@scienceevolves4417 Ай бұрын

It should be later this year but still awaiting publication. Do you intend to be living till the lease expires though?

@adamwyn-jones9731 Ай бұрын

I desperately don't want my great, great, great, great, great, great grandchildren to have to go through the hassle of lease extension 😂.

@scienceevolves4417 Ай бұрын

@@adamwyn-jones9731 saving the worry and hassle for many generations down the line, I agree 👍

@propertyaccelerator Ай бұрын

There is no exact time, but some places online say 2 months others next year. I would speak to some solicitors in a month once the dust settles and get their opinion.

@jamesagerholm2034 Ай бұрын

This is positive.

@propertyaccelerator Ай бұрын

Agreed.

@ivanwoodhouse1958 Ай бұрын

How does the Leasehold Reform Act affect my ability to purchase the Freehold of a bungalow on an Over 55 development where some properties have already purchased the Freehold and the property I am planning to buy has a lease of 60 years.?

@propertyaccelerator Ай бұрын

It will be cheaper, although we are waiting on details on the actual price.