MP COLUMN: Aiming to help leaseholders save money
The Government has recently announced plans that will bring significant benefits for home owners who are leaseholders.
They are part of the biggest shake up of property law in decades and will give people the right to extend their lease by 990 years.
Currently, many residents in Blyth Valley and across the country are required to pay high ground rents on top of a mortgage which can be like paying a rent on their own home.
Freeholders can increase the ground rent with limited benefits.
The proposal from the Housing Secretary will mean a leaseholder that opts to extend their lease will not have to pay future ground rents to the freeholder.
This will not only remove the unnecessary bureaucracy but also the costs which a home owner would not expect to have to pay year on year.
The savings for some leaseholders could amount to tens of thousands of pounds and an online calculator will be available for leaseholders to find out how much it will cost them to buy their freehold or extend their lease.
Leasehold properties that are specifically built for older people will also have ground rents restricted to zero for new leases.
I welcome these proposals and will be joining the All Parliamentary Group for Leasehold and Commonhold Reform.
Cramlington has a significant number of leasehold properties as do other parts of the constituency and I will be doing everything I can to ensure that the changes are made quickly so that residents save money.
Ian Levy, Blyth Valley MP