23 January 2025
The Government has enacted a significant change under the Leasehold and Freehold Reform Act 2024 (LAFRA), which abolishes the two-year rule. This rule, a remnant of previous legislation, required leaseholders to own their property for at least two years before they could extend their lease or purchase the freehold.
Effective from 31 January 2025, leaseholders will no longer need to wait for two years to commence enfranchisement or lease extension processes.
Housing Minister, Matthew Pennycook has today signed regulations to remove the two-year requirement, implementing the first part of the Leasehold and Freehold Reform Act 2024. This regulatory change also benefits leaseholders of houses, who will now be able to extend their lease or buy their freehold without the two-year waiting period.
Minister Pennycook emphasised that this reform marks the initial step towards a comprehensive overhaul of the leasehold system, indicating that efforts will continue to implement the measures outlined in the Leasehold and Freehold Reform Act.
At LEASE, we welcome this reform, which will simplify and ease access to enfranchisement rights.
Consultations are planned before the government brings in more comprehensive reforms to the valuation process when extending a lease or purchasing the freehold.
We look forward to implementation of further reforms set out in LAFRA including amendments to the Right to Manage planned for this Spring.
LEASE will provide updates as further information becomes available.
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