Posted on 21st November, 2024

Leasehold Reform Update – The 2 Year Rule Removed in 2025

For leaseholders who have been patiently waiting for further details on when the relevant elements of the Leasehold and Freehold Reform Act 2024 will come into force, we have some exciting news. Today, the 21st of November 2024, the Minister of State for Housing and Planning, Matthew Pennycook, provided an update in his written statement on Leasehold and Commonhold Reform.

Key Update: Removal of the 2-Year Rule

The government intends to commence the Act’s provision to remove the “2-year rule” in January 2025. This means that leaseholders will no longer have to wait two years after purchasing their property before qualifying for a Statutory Lease Extension or to buy the freehold of a house.

What This Means for Leaseholders

This is extremely welcome news for leaseholders, as it removes a significant barrier to extending leases or purchasing freeholds, when purchasing a new property. The removal of the 2-year rule will provide greater flexibility and control over your property much sooner after purchase.

What’s Next?

While this update is a positive step, it still leaves leaseholders wondering when the other provisions of the Act will come into effect. The answer to that is more complicated, and we will explore this in our next blog post. Please visit us again for further updates and detailed analysis.

Get in Touch

If you are looking to purchase a leasehold property and you require advice upon extending the lease or buying the freehold after purchase, we would be happy to discuss your individual circumstances and provide tailored advice.

It is good to stay informed and proactive to make the most of these upcoming changes. As always, we are here to help you navigate the complexities of leasehold property ownership.