Important Update for Leasehold Property Buyers
Posted on 28th January 2025 at 09:29
The government has announced a major step forward for leasehold property owners. A key part of the Leasehold and Freehold Reform Act (LAFRA), passed in May 2024, will come into force this week.
What’s Changing?
Housing Minister Matthew Pennycook has signed regulations to remove the two-year ownership rule. This means leaseholders can now:
Extend their lease
Buy their freehold
Immediately upon purchasing a leasehold property, without waiting for two years.
Is It Enough?
While this offers new flexibility, many believe it falls short. There’s increasing pressure for the government to activate the valuation section of the Act. This would:
Make it quicker, easier, and cheaper for leaseholders to enfranchise or extend their lease.
Address the high premiums and legal fees that leave many in ‘leasehold limbo.’
Any Questions?
If you’d like to discuss this update or any property-related concerns, don’t hesitate to get in touch:
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