Here's why Sheffield homeowners need to act now on legal changes to leasehold rights - or risk losing thousands of pounds

At the start of the year the Government announced plans for leasehold reform which, when introduced, will provide thousands of homeowners in the city with the opportunity to extend their leases for 990 years, effectively forever.

However, there is no clear timetable or commitment for delivery of the reform, which keeps leaseholders in limbo, according to Cavendish Legal Group.

Jonathan Frankel, partner at Cavendish Legal Group, thinks homeowners should act now.

He said: “There are few more important things than feeling secure in your own home. But for thousands of leaseholders in Sheffield that is lacking due to the short-term of their lease and cost of ground rent.

“While the Government announcement in January is certainly a welcome step forward, there is a lot of detail yet to be confirmed and no commitment to a realistic time frame for delivery.

“We want to see a deadline for implementation that homeowners can work towards to provide the security they’re asking for. The pressing point remains – the shorter the lease gets, the more costly it will be to extend.”

However, there is a solution available today which is for homeowners to exercise their statutory right to purchase the freehold and extend the lease.

Jonathan said: “Leasehold enfranchisement presents a once-in-a-lifetime opportunity, particularly for homeowners in central Sheffield where it is not uncommon for lease terms to be much shorter.

“Not only will it provide security for the homeowner, but also ensures they will be able to maximise the value of the property when it comes to selling it, as it will be a lot more appealing with a longer lease.”

Currently homeowners can buy out the freehold entirely, in which case they become their own landlord.

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Or they can extend the lease by an additional 90 years for an apartment or 50 years for a house and reduce the ground rent to a peppercorn sum which will be zero.

Under the reforms, there would be an additional 990 years on top of the remaining lease term.

Jonathan said: “It’s important for homeowners in leasehold properties to understand they don’t have to wait for the Government to finalise the details of this reform, as they currently have a statutory right to purchase the freehold and extend their leases.

“In order to extend your lease, you have to be the registered owner for at least two years. This is one of the biggest hurdles for new owners which unfortunately still remains in the Government’s proposed changes. But you don’t have to be living in the property, so it could be a rental property.

“At Cavendish Legal Group we operate nationwide with our team of specialists who stand willing and ready to assist. Talk to us today about securing your future for tomorrow.”

Email Jonathan Frankel at [email protected]

In these confusing and worrying times, local journalism is more vital than ever. Thanks to everyone who helps us ask the questions that matter by taking out a digital subscription or buying a paper. We stand together. Nancy Fielder, editor