On 24 May 2024, the Leasehold and Freehold Reform Act 2024 (LFRA) received Royal Assent.

Key Reforms

Long Residential Leases:
Bans new long residential leases of houses unless exceptions apply.

Leaseholders’ Rights:
Improves rights concerning service charges, insurance, administration charges, and sales information.
Reduces leaseholders’ liability for litigation costs.

Lease Extensions and Enfranchisement:
Extends standard lease terms to 990 years.
Increases non-residential space limit from 25% to 50% for RTM or collective enfranchisement.
Removes the two-year ownership requirement for lease extensions or buying freehold.

Estate Management Charges:
Provides protections similar to those for residential leaseholders.
Mandates landlords and estate management companies to join a mandatory redress scheme.

Specific amendments to the Building Safety Act are as follows:

Remediation Orders (Section 123):
From 24 July 2024, Tribunals can direct landlords to provide expert reports on defects.

Remediation Contribution Orders (Section 124):
Expanded to include various costs like expert reports, temporary accommodation, and interim safety measures.

Legal and Professional Fees:
Amended to allow recovery of fees by lessee-owned and controlled companies for remediation contribution orders.

Some provisions become operative on 24 July 2024, others will follow upon the introduction of further regulations.  Whilst this list is not exhaustive, we are happy to provide further information on request.

Updates will follow once the Act is published to detail the changes and their impact.