Leasehold and Freehold Reform Act 2024 becomes law
11 June 2024
Leasehold and Freehold Reform Act 2024 becomes law
The act designed to improve leaseholders rights became law
on 24th May 2024. We have summarised some of the key points that
will affect leaseholders looking to extend their leases or purchase their
freehold in the future:
- The act increases the standard extension term from 90 years (flats) and 50 years (houses) to 990 years for houses and flats.
- Leaseholders will no longer have to pay their freeholder’s costs when making a claim.
- The act removes the requirement for a new leaseholder to have owned their house or flat for 2 years before they can extend their lease or buy their freehold.
- The act prescribes changes in the valuation methodology which mean it will be cheaper for leases to extend their leases or acquire the freehold. Marriage value (payable by leaseholders for leases under 80 years) is abolished; ground rent is assumed to be capped at 0.1 per cent of the market value of the premises when valuing the freeholder’s interest; capitalisation and deferment rates will be prescribed by secondary legislation.
The Act is not in force yet but we understand that it may be
as soon as 2025 – 2026.
Please do not hesitate to get in touch with Henry Adams
should you wish to discuss the above proposals and how they might impact on you.
Henry Adam’s team of Chartered Surveyors have experience in
acting for both freeholders and leaseholders. We have excellent experience in
understanding local property values and our RICS Surveyors can guide you
through the legal and valuation process.
Our RICS qualified surveyors can support you with:
- Leasehold enfranchisement valuations for notices and counter-notices
- Collective enfranchisement valuations
- Negotiating terms for lease extensions
