Housing Minister Matthew Pennycook has announced that the requirement for a flat or house owner to have owned the property for two years before being able to extend their lease or buy their freehold, will end later this month.
Taylor Walton Solicitors says the move is good news for the owners of leasehold residential property and a step towards lifting the ‘limbo’ which many leaseholders have found themselves in since the changes were announced in May 2024.
James Khakpour-Smith, partner at Taylor Walton Solicitors said: “This is good news for the owners of leasehold flats and houses as many have been delaying their next move on the property ladder whilst they waited to see what would happen.
“Whilst more changes to legislation will come, some properties with shorter leases will now be easier to sell. I am also able to tell owners that they now don’t need to wait two years to extend the lease, and they can begin the process now.
“Also, they don’t need to make complex provisions in the sale of a property to include the lease extension as part of the sale.”
However, the firm said that while this move will be welcomed, there are still issues with the proposed legislation bringing about wider reforms to make lease extensions easier, quicker and cheaper and the government has said further consultation is going to be needed.
Khakpour-Smith added: “The owners of leasehold property who want to move need to now consider several other factors and whether the cost and time involved with extending the lease or buying the freehold will be beneficial for them prior to moving.
“For example, with Stamp Duty Land Tax rates and other tax changes from 6 April 2025, interest rates remaining stubbornly high, and the possible increase in prices of the property they want to move to next, people need to consider all these wider costs of property ownership and whether it is more beneficial for them to move now or wait.
“For many people they can’t keep life on hold to see if they will benefit from the leasehold reforms which in the grand scheme of things might be save a relatively unimportant amount of time or money for them.
“They can now market their property to prospective buyers who will have more certainty that the process to extend the lease will be cheaper and easier in the future.”
