The entire framework of leasehold is in need of reform, but that doesn’t mean that living in leasehold is all bad news. If you’re buying a leasehold property it’s well worth using a leasehold specialist who will read your lease and flag any issues of concern. Meanwhile, here are some things to be aware of.
Make sure you extend your lease before it falls below 80 years – after that point the cost of extending increases year on year. But the GOOD NEWS is the Government is working on reforms to make extension cheaper! It’s a slow process but a consultation with freeholder groups is scheduled for July 2025. Read more about lease extensions.
Most leases include service charges, and they can be increased over time. They’re probably the most disputed aspect of leasehold and there are some legal constraints on how freeholders can levy these. Walthamstow’s Warner flats generally don’t have service charges, instead leaseholders have joint responsibility for maintenance. Read more about service charges.
Most leases say permission is required from the freeholder or managing agent for structural alterations such as knocking down walls. Read more about consent for alterations.
If more than 50% of leaseholders in a building want to jointly purchase the freehold they are entitled to do so. In Warner flats with just two leaseholders, this is something many residents have done. Search the Facebook group for details. Read more about buying your freehold.