On 23 January 2025, the Government enacted a principal provision of the Leasehold and Freehold Reform Act 2024 (LAFRA) and abolished the two-year ownership rule with effect from 31 January 2025.
This is good news for leaseholders as they will no longer need to wait to have two years of ownership before they serve their Landlord with a Notice of Claim to extend their lease or to purchase the freehold in order to claim for the freehold or a new lease or lease extension. The prescribed form of tenant’s notices for claims under the Leasehold Reform Act 1967 have been updated to take account of this change.
Additionally, with the removal of the two-year ownership requirement, there is now no need for a special provision allowing a qualifying tenant’s personal representatives to bring a lease extension claim on behalf of the deceased’s estate within two years of the grant of probate. However, the enactment of this aspect of LAFRA requires that the leaseholder must be a registered owner of the property in question. With the Land Registry taking so long to register transfers, it may still be time efficient for the seller to serve the Notice of Claim and assign it to the buyer, or use the potential claim to ask the Land Registry to expedite the registration.
For further information on LAFRA and the issues raised, or advice on commencing enfranchisement or a lease extension process, please contact Sarita Ghere, an experienced senior associate in our property team at sg@branchaustinmccormick.com
