Friday 31st January 2025
As of 31 January 2025, the Government has fully enacted Section 27 of the Leasehold and Freehold Reform Act 2024 (the 2024 Act), meaning the two-year ownership requirement no longer applies to statutory lease extensions. This requirement stated that leaseholders had to own their property for at least two years before being able to extend their lease or purchase their freehold.
The remaining lease extension provisions under the 2024 Act are yet to be fully enacted, and will be subject to a further government review later this year, with full enactment expected in 2026.
The outstanding provisions include extending the lease term from 90 to 990 years as a statutory right, and setting parameters for the valuation methods used for calculating how much leaseholders should pay to extend their lease term by that length.
Stone King will publish updates as leasehold reform progresses.