Major change to homeowner rules from TODAY – what it means for you

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In a major rule that will come into force today, costly land rents will be abolished for those buying leasehold homes.

The new rules will be in effect Land rent to zero in England and WalesSaving those looking to buy hundreds of pounds.

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Changes in rules allow future buyers to buy leasehold homes to save hundreds of poundscredit: getty

a leasehold is where a homeowner buys the right to live in the property for several years, but does not actually own the land on which that property sits.

Owners of leasehold homes pay land rent to the landlord, known as the freeholder.

There is no limit to the amount freeholders can charge in ground rent, and the cost has doubled over the years.

This means that many landlords have been unable to sell his property Because buyers are kept away from the cost of extortion.

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They are also stuck in paying bills for ever-increasing charges that they may not be able to afford in the end.

For example, in 2009 a couple who bought a new flat from Taylor Wimpey for £117,000 did not know that they had a provision for doubling the land rent.

This saw their ground rent rise from £250 to £500 for the first time this year, and it could double again every 10 years until 50 years have passed, with the rent rising to £8,000 a year.

But now those buying new leasehold properties will no longer have to pay ground rent charges.

It can also benefit those who want to extend their lease informally, money saving specialist Report.

This is because the freeholder will not be able to increase your ground rent for the remainder of your existing lease term.

Once your new tenure starts, you will not pay any ground rent.

However, be aware of taking a leasehold home that has a lease tenure of 70 years.

This is because a shorter lease would be much more expensive to extend.

The government estimates that there are just over 4 million flats and new-built homes that are leased in England.

This comes as thousands of leaseholders were told they would be Refunded for improper ground rent last year.

The Competition and Markets Authority launched an investigation into whether leasehold homes were being sold unfairly and rented out higher ground.

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Subsequently, Aviva said that she would pay the families extra money they spent on the spiraling fee.

Developer Persimmon Homes also agreed to allow lessees to buy freehold of its property at a discount.



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