UPDATES.

As predicted, the legislative changes are proving more complicated than had been expected by the outgoing government in 2024. The new government confirms that there are serious flaws in the original legislation, including the proposals on Valuation, and these must be rectified before the Leasehold and Freehold Reform Act 2024 can be brought in to force. Until then, we remain in a state of limbo.

In the meantime:

–  On 21 November 2024 the Housing Minister provided an update on Leasehold Reform and a timeline to introduce the promised legislative changes.

–  From January 31st, 2025, the government abolished the two-year-ownership rule for leaseholders.
This means that the buyer of a flat can now make an application for a lease extension using a Section 42 Notice, as soon as they are the registered owner at the Land Registry. Previously, Buyers had to wait 2 years from purchasing their flat before becoming eligible.

–  On 3rd March 2025 “Right to Manage” measures  (RTM) will be introduced, which will increase the number of buildings entitled to exercise RTM.

[The following was posted here on 5th August 2024:]

“The Leasehold and Freehold Reform Act” was passed on 24th May 2024 by His Majesty’s Government in the Parliamentary “wash-up” period immediately before the general election in July.

The incoming Labour government is committed to making it cheaper and easier for leaseholders to extend their lease or to buy the freehold of their property.

However,  as part of the process of the Act, it is likely that secondary legislation will need to be introduced, and that changes will be phased in over the next few years.
No commencement date for this has yet been set.

Until we have further clarification, the leasehold property valuation process remains unchanged.

Please feel free to contact Jackie Collis if you are considering extending the lease on your flat, or buying/selling your freehold, and would like to discuss how the proposed changes might affect you.

Each Side Leasehold are independent RICS registered valuation surveyors.
We’re based between Reigate, Dorking and Horsham on the Surrey – Sussex border, and we work across South London as well as Surrey, Sussex, Kent and Hampshire. We specialise in residential properties, mainly for flats as lease extension valuers, or for freehold purchase, but also for inheritance tax and probate purposes.