Please note that this News item is not maintained, and reflects the law as at the date of publication or update.
We bring you the latest update in the world of Leasehold Reform. You may recall our update at the end of January following the Government’s abolishment of the two-year ownership rule in lease extension claims.
From 3 March 2025, we can see two significant changes to the process of Right to Manage (RTM) claims being implemented. The changes are as follows:
- Those Leaseholders who reside in what is known as a mixed-use building (a building made up of both residential and commercial premises). Leaseholders are now able to make an RTM claim where the non-residential component of their building makes up 50% of the floor space.
Previously, the maximum commercial floor space in a mixed-use building with Leaseholders seeking to exercise RTM was 25%. Following this change, we may see a significant increase in the number of Leaseholders exercising this right.
- For those Leaseholders who decided to exercise the RTM, they will no longer be responsible for their landlord’s legal costs when making the claim. This will apply providing that the notice is not withdrawn or ceases to have effect.
We note that these reforms have been implemented by the current Government now without the same being enforced in collective enfranchisement claims. It must be highlighted that similar reforms have been set out under the Leasehold and Freehold Reform Act 2024 (LAFRA 2024) for the process of collective enfranchisement. The likely reason for the delay may be the ongoing consultations on collective enfranchisement claims.
We continue to monitor the position and await further changes from the Government.
If you would like to find out a little more about the process of RTM or collective enfranchisement, please contact one of our Leasehold Enfranchisement specialists.
