Recent Changes To Leasehold Law Is Great News For Some Homeowners

Local property expert Andrew Cardwell, the managing director of award-winning Cardwells estate agents, shares some of the latest property news…

2020 was a crazy year for the property market, with periods of virtually no activity particularly during the lockdown times, and then periods of high demand, due in part to the cuts in stamp duty.

Despite the trying start to 2021, with Lockdown 3 being introduced on Monday 4th January, there has been some great news for the millions of homeowners who are Leaseholders rather than Freeholders which may have been passed by given the extraordinary times that we are living through.

There will be changes in the law which will allow both house and flat / apartment owners to extend their lease to a new standard 990-year term with a zero ground rent. This has the potential to save some leaseholders tens of thousands of pounds. In essence, any leaseholder who chooses to extend their lease, will no longer be required to pay the often increasingly expensive leasehold charges.

In some developments, there have been escalating ground rent charges and prohibitive “event fee” charges, particularly within retirement properties, the type of which that can have an impact on how attractive the property is to a potential buyer. Hopefully, over time, this change in the law will abolish these Leasehold Traps and help create a much fairer system for everyone involved. The additional good news is that even though we are all trying to safely navigate our way through Lockdown 3, you are still able to move house. The property market remains open, viewings can go ahead, and new properties can come to the sales and rental market. All appointments have to be in the now standard Covid Secure manner, but we are open for business and have found the market surprisingly buoyant, given the extreme circumstances we are all facing.

Bury has wonderful schools, beautiful countryside, enviable sports facilities, superb transport links, much-admired shopping facilities, and fantastic leisure attractions. It is no wonder Bury is so popular with buyers. I predict confidently that there will continue to be strong demand levels in our town which will inevitably be buoyed by the relatively cheap cost of borrowing and the shortage of new homes. When demand outstrips supply, it puts pressure on prices to rise. Rightmove predict that, nationally, there will be an approx. 4% rise in house prices, while other commentators have speculated a more modest growth in 2021, to be followed in 2022 with a marked upswing.

If you are considering selling or letting a property, please do not hesitate to Contact Cardwells Estate Agents Bury on 0161 761 1215 or bury@cardwells.co.uk

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