A major barrier to leaseholders has just been removed. Thanks to the Leasehold and Freehold Reform Act 2024, the long-standing “two-year rule”—which prevented new owners from extending their lease or buying their freehold for two years after purchase—is officially history.
What Has Changed & When?
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As of 31 January 2025, leaseholders no longer need to wait two years before exercising their legal rights to extend a lease or purchase the freehold of a leasehold house. This applies to both houses and flats.
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The change removes unnecessary delays and empowers new owners to take action immediately upon becoming the registered property owner.
Why This Matters for Leaseholders
| Previous Rule | New Rule (Effective 31 Jan 2025) |
|---|---|
| Must own property for 2 years | No waiting period—action from Day One |
| Required pre-sale lease extensions | Buyers gain immediate control without seller intervention |
| Delayed lease extensions cause issues | Same-day rights reduce risk and streamline transactions |
Removing the wait simplifies transactions and resolves a historic quirk. No longer must buyers negotiate a seller to initiate lease extension—buyers can now serve their own Statutory Notice upon registration.
What’s Still Pending?
While this reform is a welcome improvement, other significant parts of comprehensive leasehold reform have not yet been implemented:
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Valuation reforms (such as abolishing marriage value and extending leases to 990 years)
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New cap on ground rent
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Greater transparency on service charges
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Commonhold promotion and householder enfranchisement rights
What You Should Do Now
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Buyers: Confirm your registration is complete, then take immediate action if your lease is short—especially under 85–90 years, which affects mortgage approval.
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Sellers: Simplify sale negotiations—lease extensions are now straightforward and efficient from day one.
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Leaseholders: If ownership is registered, you can file for lease extension or freehold acquisition immediately.
This is a major step toward fairness in leasehold ownership. While broader reforms are still to come, this new rule already gives leaseholders significantly more control and less uncertainty.
Need help navigating this? Reach out to Sahin Legal Consultancy for support with lease extensions or freehold acquisitions under the updated law.
