Do you own a Leasehold Property? See here how recent changes in the law on leases may benefit you
Abolition of the Two-Year Rule for Lease Extensions and Freehold Purchases
As of early 2025, leaseholders no longer need to wait two years before they can extend the number of years of their lease or buy the freehold of their property. Under previous leasehold laws, property owners were forced to wait before acting, often leading to delays that impacted property values, mortgage eligibility, and in some cases even the saleability of a property.
How do these Leasehold Reforms benefit property owners?
These reforms mean that new leasehold property owners can immediately apply to extend the number of years on their lease or purchase their freehold, allowing for better financial planning and reducing uncertainty. The removal of this restriction also makes leasehold properties more attractive to buyers and lenders, and potential purchasers no longer have to worry about a mandatory waiting period before securing their investment.
- These leasehold law reforms are designed to make property ownership simpler, fairer, and more cost-effective. The benefits for UK leaseholders include:
- – Immediate eligibility for lease extensions and freehold purchases (no more two-year wait).
- – Potential for increased property value and marketability for leasehold properties.
- – Greater financial security for leaseholders, with fewer restrictions on managing their property investments.
What Should Leaseholders Consider Before Extending a Lease or Buying a Freehold?
While the new reforms make it easier for leaseholders to take action, there are still important factors to consider before extending a lease or purchasing a freehold:
- – Legal Costs & Process: Lease extensions and freehold purchases still involve legal steps, including valuation and negotiation with the freeholder.
– Impact on Property Value: Extending a lease or purchasing the freehold may increase the long-term value of your property, making it more attractive to future buyers.
– Ground Rent & Service Charges: Leaseholders should review any remaining financial obligations that may be tied to the property before making changes.
– Timeframe for Completion: While the two-year rule has been abolished, completing a lease extension or freehold purchase can still take time, so planning ahead is crucial.
Want to know more about these Leasehold Law Changes and to stay updated?
For professional guidance on lease extensions, freehold purchases, and leasehold enfranchisement, contact Richard Palfreyman rpaltfreyman@fionabruce.co.uk and Luke Hodgkinson lhodgkinson@fionabruce.co.uk in our Commercial Property team today at.
Fiona Bruce Solicitors can help you to understand your rights and take advantage of the latest leasehold reforms to assist secure your property future.
The contents of this post do not constitute legal advice and are provided for general information purposes only.
The contents of this post do not constitute legal advice and are provided for general information purposes only ■
