One of the last acts of the Conservative government was to pass into law the Leasehold and Freehold Reform Act. Its implementation is expected to be introduced in phases by the new Labour government over the coming months and will have a long-lasting impact on property investors.

The legislation is designed to make it easier and cheaper for leaseholders to buy their freehold, to give greater transparency around service charges and to increase standard lease extensions from 90 to 990 years on houses and flats.

It will also ban the sale of new leasehold houses, curb excessive building insurance commissions and remove the barriers that made it difficult for leaseholders to challenge landlords over costs at tribunal.

The legislation will make it easier for leaseholders in apartment buildings to take over the management of their building should they wish, although restrictions will apply if the building includes commercial.

The legislation has been welcomed by leaseholders who have often struggled to extend their lease and often find the enfranchisement process difficult and expensive. Freeholders, whether investors or individuals, potentially stand to lose.

So, what steps should residential property investors take to protect their portfolio, and is it all bad news?