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New leasehold flats ban: "Too many unscrupulous freeholders have been profiteering from loose laws for too long"

ended 03. March 2025

The Government has set out new plans to ban leasehold flats in England and Wales. Property experts welcomed the news, with one, Bob Singh of Chess Mortgages, saying: “Too many unscrupulous freeholders have been profiteering from loose laws for too long and that’s about to end. This is a positive step indeed." But one, Riz Malik of R3 Wealth, cautioned that "existing leaseholders must not be overlooked. A comprehensive approach is needed to ensure fairness for all homeowners, not just those purchasing new properties. Views will appear below until 10:30.

7 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
This is excellent news for future homebuyers, but existing leaseholders must not be overlooked. For too long, leaseholders have faced challenges in managing their costs, particularly when dealing with third-party management agencies that often lack transparency. A comprehensive approach is needed to ensure fairness for all homeowners, not just those purchasing new properties.
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Bob Singh
Founder at Chess Mortgages
The proposed changes should generate a collective sigh of relief to owners of leasehold flats in England and Wales. The measures will build in greater control and transparency for leaseholders. Too many unscrupulous freeholders have been profiteering from loose laws for too long and that’s about to end. The commonhold concept would mean there is no diminishing lease where the freeholder demands a king’s ransom to extend it. The commonhold will be like a freehold and the abolition of ground rent and forfeiture rights will provide greater security of tenure going forward. This is a positive step indeed.
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Ben Perks
Managing Director at Orchard Financial Advisers
Some leasehold companies are like a noose around homeowners' necks, so moving away from this will be a welcome change for many. For decades dishonest freeholders have been able to rule with reckless abandon. It’s great that this could be ending but something must be done to help those stuck in the clinch.
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Rohit Kohli
Director at The Mortgage Stop
The Government’s announcement to ban leasehold properties is a step in the right direction, but it only addresses future developments. Millions of homeowners remain trapped in unfair leasehold contracts, and the real challenge lies in providing a solution for them. The announcement is currently light on details — not unexpected from this government — and we await further clarification, particularly around commonhold, which comes with its own complexities. Additionally, lenders will need to stay ahead of these changes, as mortgage criteria and lending policies will inevitably need to adapt.
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Michelle Lawson
Director at Lawson Financial
The current archaic system desperately needs an overhaul so this is very welcome. However, more also needs to be done for those that are currently restricted with onerous leasehold terms having to part with substantial funds to get in a more favourable position. Commonhold makes sense but there is an element of caution as this isn't without fault either. As with everything, the devil is in the detail.
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Elliott Culley
Director at Switch Mortgage Finance
Moving from the current outdated leasehold system is a good step forward and would remove some of the difficulties some mortgage holders face when trying to get a mortgage on a leasehold property. I speak to lots of potential buyers that want to avoid leasehold flats, due to not feeling in total control over service charges and dealing with poor management companies. This bill has the potential to stop new leasehold properties, but there is currently no mention of what may happen with existing leaseholder owners.
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Marcus Wright
Managing Director at Bolton Business Finance
This would be a huge change for property developers and the potential consequences need to be thoroughly investigated before any changes implemented. With 5%-10% of a multi-unit developments' value being in the freehold, this could push up prices of flats. The real issue is rip-off leasehold agreements, which would be a much easier tackle with lighter touch regulation.