Housing Minister Matthew Pennycook has announced that flat owners will no longer need to have owned their flat for two years in order to extend their lease.
It’s a big change, and one that many leaseholders will be delighted with. But what exactly does it mean for you and your future?
In her latest article, Leasehold Expert Niki Adkins outlines everything that leaseholders need to know about this change.
What is the 2 year lease extension rule?
The two-year lease extension rule requires leaseholders to have owned their flat for two years before they are able to apply for a lease extension.
However, this is set to change, with the Government announcing that the requirement will be removed from the end of January 2025.
What does this mean for leaseholders?
Without the two-year wait, leaseholders will be able to obtain their lease extension before their lease gets shorter and extension becomes more expensive.
It will also avoid the need for expensive and complicated arrangements to be put in place in flat sales, especially those involving a lease extension ‘in process’, as buyers will be able to apply for an extension as soon as they have purchased the flat.
‘A great start for leaseholders’
Niki Adkins, Head of Frettens’ specialist Leasehold Property Team, commented: “With the Leasehold & Freehold Reform Act on the horizon, this is a great start for leaseholders, and will open up the lease extension market to many new flat owners.
The news will certainly come as a relief to those who have been waiting to extend their lease for some time now, saving them some money.
After years of waiting, the leasehold team and I are looking forward to seeing further elements of the reform legislation come into force, allowing the leasehold market to move forward.”
Leasehold Reform latest – Delay likely
Can the freeholder refuse the lease extension?
If you follow the statutory procedure, i.e. serve a statutory notice on the landlord, and do so correctly then no, they can’t refuse.
If you choose to take a non-statutory approach and simply approach the landlord to try to agree terms ‘up-front’, without a notice being served, then yes, the landlord can refuse. In fact, a landlord could initially agree to a non-statutory extension, but later change their mind.
Depending on circumstances, we would usually recommend that a leaseholder at least asks their landlord if they are willing to extend the lease without a notice being served.
However, now that the 2 year rule has been removed, a leaseholder will always have the back-up of the statutory route if the landlord is uncooperative.
Specialist Lease Extension Solicitors
Our bright Leasehold Property department is one of the largest and most experienced in the region, specialising in multiple areas of leasehold law.
We would be happy to assist you in understanding your options and getting your lease extension over the line.
If you have any questions following this article, or would like to get in touch to discuss your specific circumstances with an expert, you can get in touch on 01202 499255.
We would be happy to assist you with any leasehold property queries and offer a free initial consultation to all new clients.
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