How the government’s latest leasehold reforms will help you

The government has unveiled plans to abolish leasehold ownership and replace it with commonhold – here is what you need to know

person holding house key
(Image credit: Getty Images/Nuttawan Jayawan)

The government has unveiled plans to bring the feudal leasehold system to an end and overhaul how people own their new-build homes and common areas.

Currently, the default tenure for new-build homes, particularly flats, is leasehold, but rising ground rents and unregulated service charges have made it harder to sell these properties – affecting house prices – and mortgage lenders have been more cautious about lending against them.

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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.