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Leasehold and Freehold Reform Act 2024 receives Royal Assent
May 28, 2024

The long-awaited Leasehold and Freehold Reform Act 2024 received Royal Assent last week…

 

So, what changes received approval?

  • Lease extensions are to be to 990 years rather than just 90 years.
  • Freeholders to pay their own costs except in low-value claims.
  • Two-year ownership qualifying condition is removed.
  • The commercial property element has been increased from 25% to 50% of floor area to allow a building to qualify for enfranchisement.
  • In collective claims, freeholders can be forced to retain any non-participant flats or commercial areas.
  • The leaseholder will now benefit from 100% of the marriage value.
  • The deferment and capitalisation rates are to be prescribed by Ministers.

 

While the proposed £250 annual ground rent cap did not receive approval, the overall reforms heavily favour leaseholders’ interests.

However, these changes will not take effect immediately. Our team will be closely monitoring the situation and implementation timeline to provide timely updates and guidance.

 

For advice and assistance relating to lease extensions, right to manage and enfranchisement matters, please contact Alex Finney

 

This blog was prepared on 28 May 2024. It is not intended to be advice and should not be relied upon as such.

 

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