06 Feb Leasehold Reform: Two-Year Rule Abolished
There has been a significant change to leasehold law in the UK. Nikita Dale-Lewis, from the conveyancing team at HRJ Foreman Laws Solicitors explains what has changed and what it means for leaseholders.
Leaseholders will no longer need to wait two years
Since 31st January 2025, leaseholders no longer need to wait two years after acquiring their property to serve a notice of claim to extend their lease or purchase their freehold.
This change came into force because of the Leasehold and Freehold Reform Act 2024 whereby the two-year ownership requirement has been abolished. Previously leaseholders must have owned their property for at least two years before they could extend their lease or purchase their freehold.
This will come as positive news for those who have purchased a leasehold property within the last two years and are already registered as the legal owners of their property at the Land Registry. They can now extend their lease or purchase the freehold under statute immediately.
This is also good news for those who are currently purchasing properties that may have issues such as a very low lease term or onerous ground rent provisions and wish to extend their lease very soon after completion.
Please note that although the two-year rule has been abolished, a notice of claim can only be served by leaseholders who are the registered proprietors of their property at the Land Registry. Therefore the timing in which you can serve a notice of claim largely depends on Land Registry processing times.
Watch this space for more updates on the implementation of further reforms under the Leasehold and Freehold Reform Act 2024.
For more information about extending your lease or acquiring your freehold click here.
For legal advice on extending your lease or purchasing your freehold:
- Email info@hrjforemanlaws.co.uk
- Call Hitchin, 01462 457711, Welwyn Garden City, 01707 887700, Old Harlow 01279 709 100.
- Complete our contact form here