Leasehold And Commonhold Reform – Government Statement Confirms Timing and further reforms

The Leasehold and Freehold Reform Act 2024 received royal assent in the wash up just prior to the election.
 
It included some of the changes around the rights of leaseholders of flats and houses to obtain extended leases and the freehold that The Law Commission had recommended, i.e. providing for leases to be extended by 990 rather than 90 years, doing away with the need to have owned for two years to qualify for an extended lease and bringing more buildings within the right to enfranchise or manage by increasing the threshold of non-residential parts from 25% to 50%.

Right to Manage

The Right to Manage (RTM) was introduced in 2002 giving flat owners a no fault right to collectively take over the management functions in respect of their building.

Leaseholders, acting via an RTM company, can take control of services, repairs, maintenance, improvements, and insurance in respect of their building.

Leasehold And Commonhold Reform

The Government has recently provided updates on the phased implementation of the Leasehold and Freehold Reform Act 2024 (LaFRA), which represents a landmark shift in property law aimed at improving rights and protections for leaseholders. It has also enacted one of the many provisions.

We explore the latest developments and upcoming reforms following recent statements by the Housing Minister, as well as their implications for leaseholders and freeholders alike.