The recent removal of the 2-year ownership requirement for lease extensions is a significant change in leasehold law. As of 31 January 2025, leaseholders no longer need to have owned their flat for at least 2 years before applying for a statutory lease extension or initiating a collective enfranchisement claim to purchase the freehold.
Why has it been introduced?
This change, introduced by the Leasehold Reform Act 2024, aims to make the process more accessible and quicker for leaseholders. For example, a buyer of a leasehold flat is now able to initiate the statutory lease extension process straight after completion of the purchase without the need to wait a period of 2 years (or requiring the seller to initiate the statutory lease extension process).
What does this mean for buyers?
A buyer of a leasehold flat may, however, still require the seller to initiate the statutory lease extension process and transfer the benefit of the notice to the buyer on completion of the sale if, for example, the unexpired term of the lease is nearing the 80-year deadline.
A notice of claim to initiate the statutory lease extension process or collective enfranchisement procedure to purchase the freehold must be given by the legal owner of the lease, and so it appears that the tenant must be registered as the proprietor of the leasehold interest before making a claim.
How can we help?
Sarah Shea is a Senior Associate in our Commercial Property team, specialising in buying and selling commercial property and sites for development.
If you have any queries on the above subject, please do not hesitate to get in touch with Sarah on 01206 835225 or complete our online enquiry form.