Information for Leasehold & Freehold Reform Act Find out about the Leasehold & Freehold Reform Act
Get in touch
Leaseholders and freeholders alike may find the FAQs below helpful in
understanding the key changes introduced by the Act and how they may apply in practice.
What is the Leasehold & Freehold Reform Act?
The Leasehold & Freehold Reform Act introduces important changes to residential property law, affecting leaseholders, freeholders, and managing agents alike. With new rights, revised processes, and updated obligations, it is essential to understand what these reforms mean in practice.
As a residential property manage ment company, we have compiled this FAQ to provide a clear and straightforward overview of the key changes and their potential impact. Our aim is to help you navigate the reforms with confidence and understand any steps you may need to take.
What is it?
Can tenants now have pets
if the lease says no?
What about lease extensions?
What about Right to Manage / Collective Enfranchisement?
What about Service Charges & Transparency?
What about New Build Properties?
What does this mean for block managers?
- The Act became law in May 2024.
- It gives leaseholders more rights, protections, and transparency when managing leasehold and freehold properties.
- It affects things like lease extensions, management rights, service charges, and disputes.
- Existing lease covenants (e.g., no pets) are considered reasonable grounds.
- These clauses remain enforceable until the lease expires, even under the new Act.
- The Act encourages landlords to consider reasonable requests but does not override valid lease terms.
- Leaseholders can now apply for extensions or buy freeholds immediately after purchase — no 2-year wait.
- Standard lease extensions can go up to 990 years with a peppercorn (zero) ground rent.
- Leaseholders can more easily:
- Take over management (Right to Manage)
- Buy the freehold collectively (Collective Enfranchisement)
- Landlords cannot charge excessive legal fees, and processes are simpler.
- Must provide clear, standardised service charge info.
- Freeholders and managing agents must follow redress schemes for complaints.
- No hidden commissions; only transparent admin fees are allowed.
- Most new leasehold houses are now banned; future developments favour freehold or commonhold.
- Be prepared for more resident queries about lease extensions, pets, and management rights.
- Continue to enforce existing lease covenants until expiry.
- Ensure service charges and billing meet the new transparency standards.
- Communicate clearly with residents to explain lease obligations and statutory rights.
Bottom line: The Act strengthens tenant rights but existing leases still count as reasonable grounds for rules like no pets. Our job is to enforce leases fairly, provide clarity, and comply with new transparency standards.
Click
here to download your handy guide.
Want to know more about the Leasehold & Freehold Reform Act?
Ask our team
If you would like to understand how the Leasehold & Freehold Reform Act may affect your property, lease, or management arrangements, our team would be happy to help. You can contact us using the enquiry form opposite to discuss your situation and the options available to you.
Alternatively, get in touch on 0118 978 7182
or info@cleaverproperty.co.uk
to discuss your requirements in more detail.
