Earlier this year, the UK Government reconfirmed its intention to bring forward residential leasehold reforms following the Law Commission’s recommendations last year. The proposed changes are expected to benefit up to 4.5 million leaseholders.
The news will no doubt be welcomed by leasehold homeowners who have been campaigning for changes to what they perceive to be unfair ground rent laws. However, the impact on developers, house builders and landlords, is less clear, but it is likely to affect the legal structuring of both the ownership and the ongoing management of new residential developments.
In this article, we consider what the proposed reforms are, when they are expected to come into effect and some of the potential implications on developer landlords or investors.