BUYERS of flats will finally be able to own their properties outright under a major shake-up to prevent leasehold rip-offs.
Ministers have today unveiled plans to make commonhold — where flat owners fully own their homes — the default form of ownership.
A consultation will be launched this year to ban new leasehold flats, while a Leasehold and Commonhold Reform Bill will set out a legal framework for change.
Unlike leasehold, where third-party landlords control buildings and charge escalating fees, commonhold gives homeowners outright ownership with no ground rent, no lease expiry, and no hidden charges.
The changes will also make it cheaper and easier for existing leaseholders to buy their freehold, challenge unfair service charges, and take control of building management.
Housing Minister Matthew Pennycook said: “This Government promised not only to provide immediate relief to leaseholders but to do what is necessary to bring the feudal leasehold system to an end — and that is precisely what we are doing.”
Leasehold has been widely criticised for trapping homeowners in unfair contracts, with rising fees and little control over their own buildings.
A new Commonhold Code of Practice will set out clearer rules on building costs and maintenance, giving homeowners more control and transparency.
New rules will cap excessive fees, ban dodgy service charges and make buying a freehold cheaper and easier.
For years, leaseholders have been at the mercy of freeholders charging rip-off fees.
Some have even found themselves trapped, unable to sell their homes due to onerous lease terms.
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