Set Back for the Leasehold and Freehold Reform Act 2024.

Freeholders have been given the right to appeal the last determination. Does this new update mean more delays and potentially a reversal of the Act. More uncertainty but definitely more delay and this could be for years.

This is frustrating for leaseholders while it is good news for freeholders. There are hundreds of thousands of leaseholders in the UK that have short leases that require a lease extension to obtain a new Mortgage. Many were waiting for the new rules to come out so they can extend at a cheaper rate and for the additional 990 years.

The Conservatives introduced the 2024 Act just before they lost power. A few things were rolled out such as the 2 year rule – now leasehodlers don’t have to wait 2 years after purchasing a property before they can make a statutory application to extend their lease. Provisions that are in the Act and that have not been rolled out yet are the important factors;

990 year extension
Freeholder’s costs
Abolition of marriage value

The appeal was based on a human rights challenge. Larger freeholders essentially saying that the new Act allows the seizing of assets from them or a reduction in the value of the asset.

It is recommended that leaseholders extend their leases. The delays could be months or years and the outcome could be abolition of the Act or a slow drift into obscurity.

Please do contact us if you require to discuss this or need any further information.

01903 890 666
sjb@southeastleasehold.co.uk.