Block Management Update - Spring 2024

Block Management Update - Spring 2024

Welcome to our periodic update on Block Management News

We aim to regularly update our Leasehold clients with Industry information, activity within our business, and general items which we think you may find beneficial.

Leasehold & Freehold Reform Bill

The proposed changes to the Leasehold & Freehold Reform bill continue to process between the Houses of Commons and Lords, amongst the various proposed amendments voted into the Bill at Report Stage the Minister for Housing also made a proposal for a new clause (Clause 42) that would introduce a ban on the sale of new leasehold houses in cases where owners aim to grant new long leases. It would not be posible to grant a 'long lease' on a house unless the lease qualifies as a 'permitted lease', for example where properties can not be sold on a Freehold basis, such as on National Trust Land.

The main proposals of the Bill are;

- Extending Leases - to allow leaseholders of flats or houses to extend their leases or buy their Freehold immediately on taking ownership of a lease (rather than having to wait a mandatory 2 years). In addition, when extending the bill introduces the right for a lease extension to a term of 990 years for both houses and flats as well as allowing leaseholder with over 150 years remaning to buy out their ground rent without extending the term or buying the Freehold.

- Ground Rent - to be reduced to a 'peppercorn' (zero financial value) upon payment of a premium.

- Service Charges - to drive up transparency of information provided to leaseholders, eg on service charge budgets, administration charges etc.

- Mandatory Qualifications - are not currently proposed in the Bill but it is thought that amendments may be included to require this.

Government Grants for EV Charging

We've received information in a recent 'The Property Institute' update that significant funding for electric vehicle charging may be available to sites and multi-occupancy buildings from the Office for Zero Emissions Vehicles (OZEV) of up to £500.00 per space (for infrastructure costs) and £350.00 per charge point.

More information can be found at the link below;

https://www.gov.uk/electric-vehicle-chargepoint-grant-landlords