By Priscilla Macleod, Associate, Private Client Property
As of 31 January 2025, the Government has fully enacted Section 27 of the Leasehold and Freehold Reform act 2024, meaning the two-year ownership requirement no longer applies to statutory lease extensions. Previously, leaseholders had to own their property for at least two years before extending their lease or purchasing their freehold.
More expansive rights for flat owners to take over management of their building, including removing the obligation to pay their freeholder’s legal fees, come into force on 3 March.
The remaining lease extensions provisions under the 2024 Act are yet to be fully enacted, and will be subject to a further government review later this year, with full enactment expected in 2026. the outstanding provisions include a statutory right to extend lease terms from 90 to 990 years, and setting parameters for the valuation methods used for calculating how much leaseholders should pay to extend their lease term by that length.
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