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Change to notice periods for leasehold extensions from 31st Jan 2025 "will dramatically improve the house buying process for those looking to purchase a leasehold property"

Journalist:

ended 31. January 2025

From today, 31st January, new legislation will scrap the ‘two-year’ rule for lease extensions that will “dramatically improve the house buying process for those looking to purchase a leasehold property”, according to Chris Barry, director of Thomas Legal. Another property expert, Michelle Lawson of Lawson Financial, said: “A Dickensian quirk of the leasehold industry has finally been kicked into touch. It has never made sense to have a two-year wait and this will open many doors for property owners and property beneficiaries to now tidy up the ownership. This will also make for a more streamlined housebuying process as right now it can create all manner of issues and jeopardise sales or extend transaction times.” Meanwhile, Stephen Perkins of Yellow Brick Mortgages added: “No more will homeowners with shorter leases have to start or complete the extension process prior to selling, and those inheriting such homes have more flexibility. Hopefully this is the first of many changes in the leasehold space. They're long overdue."

4 responses from the Newspage community

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Editor
Chris Barry
Director at Thomas Legal
The changes reducing a tenant’s statutory right to extend their lease from at least two years' ownership to immediate ownership will dramatically improve the house buying process for those looking to purchase a leasehold property. It is extremely common for a buyer to ask for the lease to be extended as a condition of their offer. However this comes with huge problems as the seller has to start the process, as they are the one with the 2-year statutory right to extend, then assigned to the buyer upon completion. This process typically adds around eight weeks to the conveyancing process and with this delay comes added cost, and the additional risk of the transaction falling through altogether. Buyers now can purchase with the confidence they will be able to complete on their transaction quickly and extend their lease post completion. This may also have a positive effect on the value of a leasehold property, especially if plans to abolish marriage value are implemented later this year.
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Michelle Lawson
Director at Lawson Financial
This is excellent news for buyers and common sense has for once prevailed. A Dickensian quirk of the leasehold industry has finally been kicked into touch. It has never made sense to have a two-year wait and this will open many doors for property owners and property beneficiaries to now tidy up the ownership. This will also make for a more streamlined housebuying process as right now it can create all manner of issues and jeopardise sales or extend transaction times.
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Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
This is a common sense tweak to the rules around leaseholds. No more will homeowners with shorter leases have to start or complete the extension process prior to selling, and those inheriting such homes have more flexibility. Hopefully this is the first of many changes in the leasehold space. They're long overdue.
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Iain Swatton
Director at Exemplar Financial Services
This is a welcome and long-overdue change, making it easier and cheaper for leaseholders to secure their property’s long-term value. Now more than ever it’s important to educate leaseholders on their new rights so they can take full advantage of these reforms.