The Leasehold and Freehold Reform Bill represents a significant development in the ongoing efforts to reform the leasehold system in the UK. Here are some key points from the provided information:

Background and Context:

• The Bill is a result of years of campaigning work by the Leasehold Knowledge Partnership over the last 11 years.
• It builds on the three reports of the Law Commission, addressing issues such as enfranchisement, reforming leaseholder Right to Manage, and commonhold.
• Last year’s Leasehold Reform (Ground Rent) Act, which ended ground rents on almost all new build houses and flats, is part of the broader leasehold reform initiatives.

Key Proposals and Objectives of the Bill:

• Termination or Reduction of Ground Rents:
  • The Bill aims to terminate or drastically reduce existing ground rents.
  • There are five options for consultation, including setting all existing ground rents to a peppercorn (no monetary value).
• Enfranchisement:
  • Proposals for reforming individual and collective enfranchisement to make the process cheaper and simpler for all parties.
  • Measures to make matters easier for mixed-use sites and the introduction of an online calculator.
• Estate Charges (“Fleecehold”):
  • Better control of estate charges, including a ban on rent-charge holders granting themselves leases of freehold houses for unpaid rent-charges.
• Service Charges:
  • Modernization of rights related to information on service charges.
  • Proposals for a standard format for service charge bills to enhance transparency.
• Building Safety:
  • Additions to ensure the Building Safety Act works as intended (details to be scrutinized).
• Leasehold Houses:
  • Commitment to end most new leasehold houses, though not initially included in the Bill’s wording.

Concerns and Issues Raised:

• Estimates of Compensation:
  • Discrepancies in estimates of compensation for freeholders, with figures ranging from £27.3 billion to £30 billion.
  • Arguments that these estimates are likely to be overestimates and may not accurately reflect the true value of ground rents.
• Forfeiture:
  • Consideration of reforms to address issues related to forfeiture, including the possibility of raising the monetary threshold for seeking forfeiture.
• Right to Manage (RTM):
  • Exploration of the possibility of making RTM more accessible, including raising the level of support required and facilitating communication among leaseholders.
• Tenants’ Associations and Resident Management:
  • Suggestions for low-cost measures to encourage residents to take over the management of their blocks.
  • Proposals include requiring alerts on service charge and ground rent demands, rewriting regulations related to tenants’ associations, and holding regular ballots for resident management.
• Law Commission Proposals:
  • Regret over the omission of Law Commission proposals on sites with multiple separate blocks but one freehold.
• Impact of Permitted Development Regulations:
  • Mention of unintended consequences of regulations allowing the addition of two additional storeys to certain blocks of flats, causing damage to existing sites with poor-quality construction.

Commencement and Other Considerations:

• Details of the Bill, including commencement dates and certain measures, are left to statutory instruments.
• Calls for indications of the timetable for commencement, particularly for measures preventing landlords from recovering litigation costs and allowing leaseholders to recover their costs from landlords.

Additional Reforms Proposed:

• All New Flats Sold with Share of Freehold:
  • Proposal to sell all new flats with both a share of the freehold and corresponding membership of the Residents’ Management Company.
• Reform or Abolish Forfeiture:
  • Consideration of abolishing forfeiture or raising the monetary threshold for seeking forfeiture.
• Expansion of Right to Manage:
  • Exploration of the possibility of expanding RTM to include sites with a lower percentage of residential leaseholders.
• Encouraging Resident Takeover of Management:
  • Low-cost measures to encourage residents to take over the management of their blocks, including alerts on demands, rewriting regulations, and holding regular ballots.
• Addressing Unintended Consequences of Regulations:
  • Recognition of the unintended consequences of regulations allowing additional storeys to certain blocks of flats and the need for addressing resulting problems.

The Bill is a complex piece of legislation addressing various aspects of leasehold and freehold reform, and further scrutiny and potential amendments are expected as it progresses through Parliament.