The Leasehold and Freehold Reform Act 2024: What Leaseholders Need to Know
The Leasehold and Freehold Reform Act 2024 represents one of the most significant changes to residential leasehold property law in recent decades. The legislation is intended to make it easier and more affordable for leaseholders to extend their leases, purchase their freehold and challenge unfair practices within the leasehold sector.
Whilst some provisions are already in force, others will be implemented gradually through secondary legislation, making it important for leaseholders to understand which changes currently apply.
Lease Extensions
One of the most widely discussed reforms is the introduction of significantly longer lease extensions.
The legislation provides for leaseholders to obtain lease extensions of up to 990 years, replacing the previous position where leaseholders of flats generally received an additional 90 years and leaseholders of houses received an additional 50 years.
The reforms are also intended to simplify the lease extension process and improve affordability for many leaseholders.
Freehold Enfranchisement
The Act introduces changes designed to make collective enfranchisement more accessible.
Collective enfranchisement allows qualifying leaseholders to purchase the freehold of their building collectively, giving them greater control over management, maintenance and long-term decision-making.
The reforms seek to simplify the valuation process and reduce barriers that have historically discouraged leaseholders from exercising these rights.
Ground Rent Reform
The legislation continues the government's efforts to address concerns surrounding escalating ground rents.
Many new residential leases are already subject to restrictions on ground rents, and the Act introduces further measures aimed at creating a fairer and more transparent leasehold system.
What Do These Changes Mean for Leaseholders?
If you are considering:
- Extending your lease
- Purchasing your freehold
- Participating in a collective enfranchisement claim
- Exercising your Right to Manage (RTM)
- Selling a leasehold property
the reforms may have a significant impact on your options and potential costs.
As implementation of the legislation continues, professional advice is essential to understand how the changes apply to your specific circumstances.
How Archery Estates Can Help
At Archery Estates, we regularly assist leaseholders, RTM Companies, Resident Management Companies and freeholders with leasehold property matters, including lease extensions, freehold enfranchisement, Right to Manage claims and residential block management.
Whether you are exploring your rights as a leaseholder or considering greater control over the management of your building, our team can provide practical guidance and support.
Need Advice?
If you would like to discuss lease extensions, freehold enfranchisement, Right to Manage or any aspect of residential property management, contact Archery Estates for an initial discussion.