The Commonhold and Leasehold Reform Bill gained Royal Assent this month and will officially become law in July this year.
The bill will come as good news to leaseholders who will benefit from a new set of rights which will enable them to have greater control over managing their property.
Housing minister, Sally Keeble said: ‘The new act is a result of support for a major overhaul of the leasehold system in England and Wales. It will provide leaseholders with a strong package of safeguards against forfeiture, making this, in effect, a sanction of last resort against wilful non-payers.’
The bill, which will be known as the Commonhold and Leasehold Reform Act 2002, will provide among other rights, a new form of tenure called commonhold ‘ an improved system for future ownership and the management of blocks of flats.
Graham Harris, a previous president of the National Association of Estate Agents, said: ‘The changes will make life a lot easier, especially for those stuck in long leases.’
Additional benefits for leaseholders include the ability to obtain longer leases, additional protection against excessive administration charges or improvements and a requirement of landlords to provide written notice of ground rents to leaseholders before imposing any changes.