The Leasehold and Freehold Reform Act 2024 introduces significant changes to leasehold and freehold property regulations, effective from 3 March 2025. These changes aim to empower leaseholders and streamline processes related to lease extensions and the Right to Manage (RTM).
Here are the key updates:
- Removal of the 2-Year Qualification Period for Lease Extensions:
- Previously, leaseholders were required to own their property for at least two years before they could apply for a statutory lease extension. This qualification period has now been removed, allowing leaseholders to apply for an extension as soon as they acquire the property[1]. This change is expected to make it easier and quicker for leaseholders to secure longer lease terms.
- Increased Non-Residential Floorspace Limit for RTM:
- The non-residential floorspace limit for buildings eligible for RTM has been increased from 25% to 50%[2]. This means that more mixed-use buildings, which include both residential and commercial spaces, can now qualify for RTM. This change is designed to give more leaseholders the opportunity to take control of the management of their buildings.
- Landlord's Legal Costs in RTM Applications:
- Under the new regulations, leaseholders will no longer be responsible for paying the landlord's legal costs in RTM applications[3]. This change aims to reduce the financial burden on leaseholders and encourage more of them to pursue RTM.
These reforms are part of a broader effort to make leasehold and freehold property ownership more transparent, fair, and accessible. By removing barriers and reducing costs, the Leasehold and Freehold Reform Act 2024 seeks to empower leaseholders and improve their rights.
How Tozers Can Help
At Tozers, we understand the complexities and challenges that come with leasehold and freehold property ownership. Our experienced team of experts are here to guide you through these new regulations and help you make the most of the opportunities they present. Whether you need assistance with applying for a lease extension, navigating the RTM process, or understanding your rights and responsibilities, we are here to provide clear, practical advice and support every step of the way.
