Leasehold reforms to increase house prices by £50,000

Proposed housing law reforms to abolish ground rents and lease charges could boost house prices by £50,000, according to industry experts. Research by consultancy Capital Economics found that Government plans to change the leasehold system would save homeowners tens of thousands of pounds and boost house prices. The Government reforms include plans to abolish onerous ground rents and extra charges to extend a lease after it passes 80 years, known as “marriage value”. If these planned changes are enacted, leasehold homes sold with a short lease could rise in value, while the cost of extending leases for existing homeowners would fall. David Wadsworth, of JMW solicitors, commented that “The government reforms will make those homes more marketable.”

The Daily Telegraph (21/01/2021)