Pennycook signs to remove two year wait for leaseholders to extend their lease

Matthew Pennycook, Labour MP for Greenwich and Woolwich and Minister of State for Housing and Planning at Ministry for Housing, Government and Local Communities, has taken to X, formerly Twitter, to confirm leaseholders can exercise their right to extend their lease or buy their freehold immediately upon purchasing a leasehold property, rather than wait two years.

Previous legislation required leaseholders to have owned the property for two years or more before they can apply for lease extensions.

Writing on X, formerly Twitter, Mr Pennycook said

“The work continues to switch on the measures in the Leasehold and Freehold Reform Act. I have today signed regulations to remove the two-year ownership rule for leaseholders of flats to extend their lease, and leaseholders of houses to extend their lease or buy their freehold. “

“This change will come into force at the end of this month, giving leaseholders the flexibility to make a claim immediately upon buying a leasehold property, and reducing their costs as a result.”

Welcoming the development the National Leasehold Campaign, a Facebook campaign with over 32,000 followers said

“Today’s news is a significant step forward and follows the Ministerial leasehold statement in November, where the government reaffirmed their determination to honour Labour’s manifesto commitments to finally bring the feudal leasehold system to an end. This is the first action to be delivered.”

“Whilst we welcome today’s action there is still a long way to go to deliver the promises Leaseholders desperately need and deserve. Without the valuation section of the Leasehold and Freehold Reform Act (LAFRA) 2024 being switched on, many leaseholders remain in a state of ‘Leasehold Limbo’. They still won’t be able to afford the overinflated premiums and legal fees to buy their freehold or extend their lease.”

“We urge the government to expedite the valuation part of the Act so that Leaseholders can enfranchise (buy their freeholds) or extend their lease quicker, easier and cheaper. This is what millions of leaseholders and the 30k members in the NLC are waiting for. Time is running out as in the meantime Leaseholders remain at the mercy of freeholder investors who continue to fleece tenants through extortionate charges trapping them in a system they cannot afford to get out of.”

In recent weeks the government appeared to have affirmed their commitment to commonhold tenure following the Housing, Communities and Local Government (HCLG) Committee questioning Deputy Prime Minister Angela Rayner on on the Government’s housing and planning policy ambitions.

And calling for further consultation the future of tenure Linz Darlington, MD of Lease Extension firm Homehold added

While this is a welcome development, removing the ownership condition is a drop in the ocean in terms of what is needed from leasehold reform. It is a small change which will benefit a small proportion of leaseholders.We estimate that hundreds of thousands of leaseholders are waiting for the more significant changes to the lease extension regime which have been promised to make it “cheaper and easier” for them to extend their leases.

The Leasehold and Freehold Reform Act 2024 has already set out these changes but they are not yet in force. Despite this legislation receiving Royal Assent in May 2024 – now eight months ago – the Government intends to run a further consultation on some of the important provisions. They don’t intend to run this consultation until the Summer, and this creates a further delay which is unwarranted and unwelcome.For leaseholders waiting for leasehold reform, they have now had successive governments promise reforms which always seem tantalisingly close, but never actually seem to arrive.

We need the Labour Government to bring forward the consultation, and commit to swiftly implementing the legislation.”

 

One Response

  1. Leasehold enfranchised is really outdated leaseholders are forced to put up with expensive ground rent and unnecessary service charges
    It not affordable to purchase a leasehold property in England. Outdated one sided Right to Buy lease needs overhauling.The 2 year rule of ownership before lease extension need overturning ASAP.

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