The Leasehold and Freehold Reform Act has officially become law, impacting both owners of freeholds for leasehold properties and house builders.

Key reforms include:

  • Immediate Lease Purchase: Leaseholders no longer need to wait two years before they can buy or extend their lease.
  • Extended Lease Terms: The standard lease extension term is now 990 years for both houses and flats, up from the previous 50 years for houses and 90 years for flats. This change is aimed at providing leaseholders with greater security in their homes.
  • Ban on New Leasehold Sales: The sale of new leasehold homes is now prohibited, ensuring that, except in exceptional circumstances, every new house in England and Wales will be freehold from the start.
  • Transparent Billing: Freeholders and managing agents must issue bills in a standardized format to enhance transparency of charges. It is now also easier and cheaper for leaseholders to take over the management of their buildings.
  • Redress Scheme Requirement: Freeholders who manage their buildings themselves are now required to belong to a redress scheme, aligning with the existing requirement for managing agents.

For more details on these changes, visit: Leasehold Reforms Become Law.