The Leasehold and Freehold Reform Act 2024 becomes law

The Leasehold and Freehold Reform Act 2024 was given Royal Assent on 24 May 2024. 

The Act was pushed through in a six month period and was the last piece of business dealt with in this parliamentary session. The headline terms of the Act: 

• Increases the standard lease extension for both houses and flats to 990 years. 
• Makes it cheaper for leaseholders to extend their lease or exercise their collective enfranchisement rights. 
• Bans the sale of new leasehold houses (with certain exemptions).
• Removes the two year ownership requirement before the right to extend or buy the freehold can be exercised. 
• Increases the pool of leaseholders who can exercise enfranchisement or Right to Manage rights by changing the percentage of commercial floor space from 25% to 50%. 
• Increases the transparency of service charges. 

Importantly, no amendments were made to the Bill to restrict ground rent before the Act received Royal Assent. 

There is currently no commencement date for the Act. A decision on when the Act is implemented will be for the next Government.

We are hosting a webinar on the Act and its consequences on Tuesday 11th June, register now! 

Should you require further advice, please contact Mark Foxcroft or Zoe McLean-Wells.