01329 822 333
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New regulations have been introduced to formally enact Section 27 of The Leasehold and Freehold Reform Act 2024. This section abolishes the two-year ownership requirement for extending your lease.
For leaseholders, this means you will no longer be required to own your flat for two years before serving a statutory notice on your landlord to exercise your right to extend the lease under the statutory route.
This update to the legislation will benefit leaseholders in two key ways. First, it ensures that the premium payable does not increase while the leaseholder is waiting for the two-year qualification period to elapse. Second, it levels the bargaining position between the parties when negotiating under the informal route.
Before this new provision, leaseholders who had not owned their flat for the required two years were forced to negotiate informally with the landlord. The terms proposed by the landlord were often onerous, with inflated premiums, since leaseholders could not rely on the statutory route if the informal terms were unfavourable. With the introduction of this legislative update, leaseholders now have the option to pursue either route, putting them in a stronger bargaining position should they choose to negotiate informally for a lease extension.
Any lease extension related queries, please contact our commercial team on 01329 822 333
https://www.churchers.co.uk/services-business/commercial-and-company-law/
