LATEST NEWS & UPDATES

FEBRUARY 2025

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Leasehold Reform

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Statutory Lease Extensions

 

As mentioned last month, Leaseholders now longer have to wait two years before seeking a Statutory Lease Extension (however, their Title to the relevant property needs to be registered at the Land Registry before they can do so)

 

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Consultation on Buildings Insurance Fees

 

That ended on the 24 February and the outcome is awaited

 

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Right to Manage 

 

On the 6th February, the Housing Minister laid secondary legislation which brings into force on the 3 March 2025 the Right to Manage provisions of the Leasehold and Freehold Reform Act 2024. Those revisions include:-

 

• an increase in in the extent of the building being used for non-residential purposes (i.e. commercial) from 25% to 50%. That will allow Leaseholders to exercise the Right to Manage even if half of their building is used for non-residential purposes, which should bring many more buildings within the scope of the Right to Manage

 

• limiting the Freeholder's ability to recover its costs in relation to a Right to Manage claim

 

 

​​Under the RTM Companies (Model Articles) (England)  (Amendment) Regulations 2025, changes have also been made to the current statutory form of Articles of Association for an RTM Company. Those changes restrict the extent of the voting rights of the Freeholder/Landlord so that they do not exceed one third of the votes exercisable by the qualifying tenants (i.e. to stop the Freeholder/Landlord being able to control the RTM Company)

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