Leasehold and Freehold Reform Act 2024
The Leasehold and Freehold Reform Bill received Royal Assent on 24 May 2024 and is now the Leasehold and Freehold Reform Act 2024.
Although the Bill has received Royal Assent, for the law to take effect further legislation will need to be implemented to bring the reforms into force. The Government has previously indicated that the majority of the reforms will come into effect in 2025/2026, with others potentially not coming into force until 2028 onwards. We will have to see what impact the upcoming general election has upon implementation of the Act.
The final form of new Act has, as at the time of this brief Note, not yet been published. However, based on the draft previous Bills and final readings, the headline points are as follows:
- The Act applies only in England and applies to long leases of flats and houses, including those covered by existing leases;
- Flat and house leaseholders will be able to extend their lease by a standard term of 990 years;
- New leases of houses will be granted in return for a premium rather than a market rent and the new lease will be at a peppercorn rent from the grant of the lease;
- Premium calculation changes including the removal of marriage value; and
- Proposed Commonhold provisions will be introduced in due course.
Once the Act has been published in its final form, and we get a clearer picture of “What next?”, we will provide more news.
In the meantime, if you have any queries or need interim advice please get in touch.
