Key Points of the Act – Leasehold Reform 2024 law by Royal Assent:

1. Easier and Cheaper Freehold Purchase:

   • Simplifies the process for leaseholders to buy their freehold.

2. Extended Lease Terms:

   • Increases standard lease extension terms to 990 years for both houses and flats.

3. Transparency in Service Charges:

   • Requires service charges to be issued in a standardized format for easier scrutiny and challenge.

4. Challenge Unreasonable Charges:

   • Removes barriers for leaseholders to dispute unreasonable charges at Tribunal.

5. Ban on New Leasehold Houses:

   • Prohibits the sale of new leasehold houses, except in exceptional circumstances.

6. End Excessive Insurance Commissions:

   • Bans excessive buildings insurance commissions for freeholders and managing agents.

7. Lease Extension and Freehold Purchase:

   • Abolishes the two-year ownership requirement before a leaseholder can extend their lease or buy the freehold.

8. Rights for Freehold Homeowners:

   • Grants freehold homeowners the same rights of redress and transparency over estate charges as leaseholders.

9. Management and Enfranchisement:

   • Increases the commercial space limit from 25% to 50% for buildings where leaseholders can take over management or buy the freehold.

Strengthened Consumer Rights:

• Cheaper and Easier Lease Extensions and Freehold Purchases:

  • Reduces costs and increases security for leaseholders.

• Standardized Service Charge Bills:

  • Enhances transparency and ease of challenge.

• Empowerment in Management Choices:

  • Facilitates easier management takeover by leaseholders.

• Legal Cost Reform:

  • Leaseholders will not have to pay freeholders’ costs when exercising enfranchisement rights.

• Access to Redress Schemes:

  • Expands access to redress schemes for leaseholders to challenge poor practices.

• Faster Property Transactions:

  • Sets maximum time and fees for buying and selling information.

Additional Benefits:

• Legal Cost Relief:

  • Removes the presumption that leaseholders pay freeholders’ legal costs when challenging poor practices.

• Transparent Insurance Fees:

  • Replaces opaque commissions with transparent and fair handling fees.

• Freehold from the Outset:

  • Ensures new houses are freehold, except in exceptional circumstances.

The Act, now officially law with Royal Assent, marks a significant milestone in strengthening homeowner rights and consumer protections.