Government announces huge leasehold reform which will affect millions of homeowners

Huge new changes to the laws around leaseholds which could affect millions of homeowners have been brought to Parliament.

The Leasehold and Freehold Reform Bill has been branded by the government as one of the 'most significant reforms to the leasehold system for a generation.'

The reforms will make it easier and cheaper for leaseholders in England and Wales to buy their freehold, increase standard lease extension terms to 990 years for houses and flats, and provide greater transparency over service charges. The bill will also help more leaseholders take over the management of their property instead of having to use the freeholder's choice.

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The bill will also make it easier and cheaper for homeowners to get the information needed to sell a leasehold home.

Ahead of the bills introduction to Parliament on Monday, Housing Secretary, Michael Gove said: "People work hard to own a home. But for far too long too many have been denied the full benefits of ownership through the unfair and outdated leasehold system.

"That’s why liberating leaseholders forms a vital part of the Government’s Long-Term Plan for Housing.

"So today marks a landmark moment for millions of leaseholders across the country, as we unveil laws to deliver significant new rights and protections, slash unfair costs and crack down on exploitation."

Here is a full list of all the reforms in the bill:

The government is also already consulting on options to cap ground rents for existing leases. The consultation closes on December 21.