Source of funds enquiries are not discretionary. They are designed to protect buyers, solicitors, lenders and the wider property market, and failure to address them properly can result in delay or, in some cases, an inability to proceed.

What Is Meant by “Source of Funds”?

“Source of funds” refers to the origin of the monies being used to purchase a property. This may include, for example:

• Mortgage funds provided by a lender
• A financial gift from a family member
• An inheritance
• Proceeds from the sale of another property or asset
• Investment or dividend income
• Personal savings accumulated over time

As residential property solicitors, we are required to obtain clear documentary evidence to verify the legitimacy of these funds. The nature of the evidence required will depend on each client’s circumstances but commonly includes bank statements, probate documentation, completion statements, investment records or formal gift letters.

Why Are Source of Funds Checks Required?

Anti-Money Laundering Compliance – Solicitors are subject to strict anti-money laundering legislation. Property transactions can be vulnerable to misuse by those seeking to conceal or legitimise the proceeds of crime. Carrying out robust source of funds checks is essential to comply with these regulations and to uphold the integrity of the residential property market.

Protecting Buyers and Their Investment – These checks are also in the buyer’s own interests. Where property is purchased using funds later linked to criminal activity, enforcement authorities may have powers to recover the asset, even where the buyer was unaware of any wrongdoing. Proper verification at the outset significantly reduces this risk.

Managing Transactional Risk and Delay – If satisfactory evidence of funds is not provided, a transaction may be delayed or prevented from progressing. Addressing source of funds requirements early, and providing clear documentation promptly, helps ensure that the conveyancing process runs smoothly.

What Evidence May Be Requested?

Depending on the circumstances of the transaction, buyers may be asked to provide:

• A signed gift letter together with supporting bank statements from the donor
• Investment or shareholding statements
• A completion statement from the sale of a property
• A grant of probate or confirmation from executors where funds derive from an inheritance
• Recent bank statements demonstrating the build-up of savings

How You Can Assist the Process

To minimise disruption and delay, buyers are encouraged to:

• Retain copies of all relevant paperwork
• Avoid unnecessary transfers between accounts, which can complicate the audit trail
• Provide requested documentation promptly
• Be open and transparent about the origin of their funds

Final Thoughts

Source of funds checks are an essential and unavoidable part of any residential property transaction. While they can feel onerous, they are in place to ensure compliance with legal obligations, protect buyers, and safeguard the transaction as a whole.

These reforms are in addition to recent changes to the residential sector by the Leasehold and Freehold Reform Act 2024 and the Renters’ Rights Act 2025.

 

Ground Rents:

The Bill caps ground rents at £250 per annum for a 40-year transitional period, after which ground rents will reduce to a peppercorn. The cap will be introduced in late 2028. The Bill is designed to end excessive and unaffordable ground rent charges which can make properties hard to sell and mortgage.

Since 2022 (Leasehold Reform (Ground Rent) Act 2020) all new leases that have been granted have to be at a peppercorn rent, in any event.

Ground rents have long provided investors with a dependable income stream, often forming the core value of ground rent portfolios. These portfolios will see their income diminish significantly and disappearing altogether after 40 years. A once burgeoning ground rent industry will now be in decline.

 

Abolition of Forfeiture:

The Bill abolishes the threat of forfeiture which is a landlord’s remedy for breaches of long residential lease covenants and allows the lease to be terminated where there have been unpaid sums such as ground rents and service charges.

The Bill replaces this with the new statutory enforcement scheme to include introduction of a new court power to make remedial orders, orders for sale or cost orders.

 

New Leasehold Flats:

A hugely controversial element of the Bill is a total ban on the selling of new leasehold flats once the commonhold model is in place. Residential flats will be sold as commonhold which is a form of ownership where residents collectively own and manage the building.

The ban prohibits the grant or assignment of new long residential leases in flats and applies to long residential leases exceeding 21 years and flats and buildings that are wholly on commonhold land (where no part was demised by a relevant lease before the ban).

As yet there is no real detail of what the documentation will look like that will be imposed and how this will interact in a mixed use scheme where there are commercial units. Further, lenders have to be on board otherwise such schemes will be unmortgagable.

Since the introduction of commonhold in 2004 by the Commonhold and Leasehold Reform Act 2002 which introduces new form of tenure, only 20 developments in England and Wales have utilised this scheme. 

Commonhold is a system of freehold ownership, that gives apartment owners ownership of their individual apartment and collective control over the shared areas. It removes issues associated with leases such as ground rents, diminishing lease terms and lack of control of the management of the building.

Certain categories of leasehold flats will be permitted and will be exempt from the ban and these will include shared ownership leases (allowing staircasing to 100% ownership) and home finance plan leases (home reversion plans and home purchase plans).

Existing leasehold flats are unaffected.

 

Conversion of Leasehold Developments to Commonhold Developments:

The Bill allows for the conversion of existing leasehold schemes into commonhold. This can be done with the consent of only 50% of qualifying leaseholders (rather than unanimous agreement).

There are proposals of introducing sections within a commonhold allowing further management of mixed-use buildings. There would be a Commonhold Community Statement to codify governance of the building. Directors could be appointed through first tier tribunal and will limit developers voting powers to reflect the units they still own. Where a site is not yet complete there will be rights reserved for developers with the First Tier Tribunal having power to review such proposals.

Apparently, the bill reinvigorates commonhold to simplify structures and make it easier for developers to use commonhold for new flats. Commonhold ownership is said to give resident landlords the powers for setting budgets and service charges collectively.

 

Estate Rent Charges:

The Bill removes disproportionate remedies (such as taking possession or granting a lease) previously available to rent charge owners for arrears.

Rent charge owners will be able to serve a notice demanding payment on the landowner, including specified information and allowing 30 days before any enforcement action can commence. Rent charge owners may still recover arrears through proportionate means such as cost recovery claims, the small claims court or a breach of covenant claim.

 

There is a fundamental shift away from the leasehold model for flats in England and Wales. Although, the Bill is open to consultation until April 2026 and still needs to be passed by Parliament. It would be prudent for you to review your existing portfolio and future transactions along with the plethora of changes that the Government have already bought in.

To find out more, please contact Caroline Vernon, or the Residential Real Estate Team. 

What is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document allowing someone you trust (your attorney) to make decisions for you. In property and financial matters, this includes signing contracts, completing sales, or buying a home. An LPA must be registered with the Office of the Public Guardian before it can be used. Once registered, it remains valid until revoked or until the donor passes away.

Can You Buy or Sell a Property Using an LPA?

Yes, this is a common scenario. For example, you may need to sell a parent’s home if they have moved into care, or you might be living abroad and want someone in the UK to handle the purchase of your new house. The key is that the LPA must be properly registered and give the attorney clear authority to deal with property and land.

How to Prove an LPA is Valid – Getting an Access Code

The Office of the Public Guardian (OPG) offers an online service that makes it quicker and easier to prove an LPA is valid. The donor or attorney can request a secure access code at www.gov.uk/view-lpa. This code can then be shared with organisations such as banks, solicitors, or care providers, who can view a digital summary of the registered LPA.

While the access code is a useful tool for many organisations, HM Land Registry still requires a certified copy of the LPA to be lodged with applications. This is because the Registry must hold documentary evidence on file and cannot rely solely on the online summary.

For attorneys, it is still sensible to request an access code in advance, as it can speed up checks with other organisations involved in the transaction. However, when registering a property transfer or mortgage, a certified copy of the LPA must still be provided to Land Registry.

What Does HM Land Registry Need?

When an attorney signs a transfer deed, mortgage, or other legal document, the Land Registry will usually ask to see the registered LPA (or a certified copy). If the LPA is more than a year old, they may also want confirmation that it has not been revoked. If anything is missing or unclear, the Land Registry may raise queries, potentially delaying the transaction.

What About Jointly Owned Property?

If the property is jointly owned, the rules can be more complex. A sole attorney cannot always give a valid receipt for the sale proceeds, so in some cases, more than one attorney or a trustee may need to be involved. Getting this right is crucial to avoid problems later on.

What If the Donor Has Lost Capacity?

One of the main benefits of an LPA is that it can still be used if the donor loses mental capacity. Provided the LPA is registered and valid, the attorney can complete the transaction. Buyers and lenders are also protected if they rely in good faith on a registered LPA, meaning the purchase remains secure even if issues with the document come to light later.

How We Can Help

Using an LPA in property transactions requires careful handling, but with the right legal advice, the process can run smoothly. Our Residential Property team regularly advises attorneys and families on sales and purchases involving a Power of Attorney. Whether you are selling a parent’s house under an LPA or buying a home while living abroad, we can guide you every step of the way.

As of October 2013, a buyer of a property takes free from CR, where it is not protected by an entry at the Land Registry. However, if the land has not changed hands since that date, and the purchase is the first since then, a CR notice could still be entered before the registration is complete, creating liable. As a result, it is still common practice to carry out a CR search and obtain an indemnity policy when the search flags that there is a potential risk.

The Law Commission aims to ensure that CR does not bind buyers, unless they are registered and visible, reducing the need for CR searches or insurance. 

The Law Commission’s proposals would mean that the title register could be relied upon as an accurate picture of the position at any one time. The Law Commission published the new consultation on 15 July 2025, with the consultation closing on 15 November 2025. With the Law Commission aiming to publish its final report in 2026.

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Caroline using the details below.

Sale of new flats on commonhold

The Government’s initial focus is a ban on the sale of new flats using the traditional leasehold structure. They are instead proposing that new flats are sold on a commonhold structure.  The Government will then introduce the Draft Leasehold and Commonhold Bill to Parliament during the second part of 2025.

The Government plans to adopt the Law Commission’s recommendation to enable developers to create sections within developments to enable those with different interests to vote on the issues that involve them but not on those that do not. For example, in a mixed-use estate, a floor of retail units that does not use the same facilities as the flats above could be a separate section from the flats. The Bill will contain rules about when sections can be created, combined or dissolved, but the expectation is that this will form part of the planning and construction phase. There will also be flexibility to allow the contributions from different sections to vary depending on the particular heads of costs.

Conversion of existing leasehold flats to commonhold

The Government also want to encourage the conversion of existing leasehold flats to the commonhold structure and to make commonhold the predominant form of home ownership in England and Wales.  Accordingly, the White Paper extends to their plans to amend existing commonhold procedure, which will also form part of the Draft Leasehold and Commonhold Bill.

It has been possible for residential units to be let on a commonhold basis since 2004, but uptake has been extremely low. Currently, conversion to commonhold requires the consent of the freeholder, all leaseholders and all those lending institutions with a charge over the freehold or any of the leasehold properties to create a commohold structure. The Government wants to implement the Law Commission’s recommendation that at least 50% consent is required for conversion in the future. This doesn’t completely remove all obstacles since the consent of the freeholder will still be required.  One option is therefore for a group of leaseholders to acquire the freehold first by way of collective enfranchisement and then convert to commonhold. 

The Government is keen to promote commonhold and increase awareness and understanding of how the proposed structure currently operates and could be improved via amendments to the existing legislation. Landlords, developers and those involved with residential and mixed-use properties will want to familiarise themselves with the commonhold process and education is key to the Government’s plans.

The Law Commission proposed that financial incentives may be needed for developers to offer new flats on commonhold. No such financial incentives are proposed by the Government, who intend to make it a mandatory requirement for new flats to be created in commonhold structure.  The Government’s message is that developers should start considering the implications of a move to commonhold for new flats now, together with the consultation due later in the year.

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Shen using the details below. 

The key changes are as follows:

Abolish fixed term tenancies

The Bill will abolish fixed term Assured Shorthold Tenancies (“ASTs”) and so called “no-fault” evictions. Landlords will be prevented from serving Section 21 Notices giving at least 2 months’ notice to a tenant to vacate the premises. Instead, all tenants will become assured periodic tenants occupying the property on a month-by-month basis. A tenant will be able to give 2 months’ notice to a landlord if they want to leave the premises. Landlords, however, will need to prove a statutory ground in order to obtain possession. The Government has sought to strengthen those grounds of possession. The most commonly relied upon mandatory ground for possession is a specified amount of rent arrears, which, under the Bill will require a higher threshold of arrears to be established than under the current law. The new proposed ground 8 will require there to be at least 3 months’ rent arears both at the date of service of the Section 8 Notice and the date of the hearing. Under the current law, there must be at least 2 months’ rent arrears to rely on ground 8. This means that clients will need to factor in higher arrears before seeking possession.

Increasing rent

As the new style assured periodic tenancies will have no “end date”, landlords will need to rely on the statutory process for increasing rent. This requires landlords to serve a statutory notice of increase of rent giving at least 2 months’ notice of the increase. Tenants will be able to challenge rent increases in the First-Tier Tribunal (Property) Chamber (“FTT”). Once the Tribunal has determined the open market rent for the property, this will be payable from the later date of determination rather than the date of the notice of increase. Rental increases will be restricted to one per year. A notice of increase of rent can only be served after one year has elapsed since the date of determination by the Tribunal, or date when the last rent increase took effect. In addition, there is a general right to challenge the rent in the first 6 months of the tenancy. The new rent will be assessed on the basis of the open market rent for the property. The Government have confirmed during the passage of the Bill that it is opposed to the implementation of any rent controls under the legislation.

Requests to keep pets

There is a term implied into all assured tenancies, that a tenant has the right to request consent to keep a pet at the property and the landlord cannot unreasonably refuse consent. A landlord must respond to a request within 28 days and where consent is granted, the landlord can require the tenant to take out additional insurance as a result of having a pet in the property or reimburse the costs incurred by the landlord of doing so. Obtaining pet insurance will be permitted under the Tenant Fees Act 2019, by an amendment under the Bill. There may be wider restrictions in leasehold properties, under the head lease or new build developers of leasehold properties may limit pets to particular floors or buildings.

Property database

Underpinning the Bill is a new property database which will require landlords to have an active listing. Much of the detail about how the database will operate and what information will be required to achieve an active listing will be contained in secondary legislation, which is not currently available. Additional administrative costs should be factored into a clients’ business model in registering and updating their listings on the property database.

County Court capacity

There are no provisions in the Bill to deal with the potential increase in possession claims in the County Court or challenges to rent in the FTT. Landlords can currently use an accelerated possession procedure where a Judge will usually make a possession order without a Court hearing. As landlords will be required to prove a ground for possession, the majority of possession claims, once the Bill becomes law, will require at least one Court hearing. The Government have provided assurances that there is sufficient capacity in the court system to deal and the possession process will ultimately be digitised to ensure that this does not become longer than the current system.

Restrictions on rent in advance

The Government has restricted the ability for a landlord to request rent to be paid in advance. This is currently a useful option where a tenant does not meet affordability criteria or is in full time education. It provides a low-risk option for landlords to proceed with tenants who may not otherwise be in a position to enter into a tenancy. As a result, there is likely to be an increase in the use of guarantors to guarantee the obligations of a tenant under an assured periodic tenancy. However, guarantors liability is effectively “open ended” which means they could be on the hook for an unspecified period of time.

Transitional provisions

The Government will implement the Bill on a commencement date (to be announced). As from that date all existing ASTs will be converted to assured periodic tenancies. Where a Section 21 Notice has been served and possession proceedings sent to the Court immediately before the commencement date, the Section 21 Notice will remain valid until those possession proceedings are concluded. If a Section 21 Notice has been served before the commencement date but the landlord has not yet sent possession proceedings to the Court (whether or not because the Section 21 Notice has not yet expired), the landlord will not be able to start possession proceedings until either 6 months after the service of the Section 21 Notice or 3 months beginning with the commencement date, if the 3 month period ends before the 6 month period. So, the longstop date for possession proceedings would be 3 months from the commencement date. The Bill contains identical provisions for Section 8 Notices relying on a ground of possession served before the commencement date except that technically speaking a Section 8 Notice remains valid for 12 months from the date of service (not 6 months as for Section 21 Notices).

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Caroline using the details below.

This brings into force Section 27 of the Leasehold and Freehold Reform Act 2024 (“LAFRA 2024”). This means that it is no longer necessary for:

• the tenant of a leasehold house looking to purchase the freehold or extend their lease under the Leasehold Reform Act 1967 (“LRA 1967”) to have owned their house for the last two years; or
• the tenant of a leasehold flat seeking to extend their lease under the Leasehold Reform, Housing and Urban Development Act 1993 (“LRHUDA 1993”) to have owned their flat for two years before making a claim.

Section 27 also abolishes some ancillary provisions regarding the service of notices by personal representatives where the tenant has died.  The previous situation was that a personal representative could serve a notice of claim in the deceased tenant’s name within the first two years of the tenant’s death and then in their own name after two years.  Under LAFRA 2024, personal representatives remain able to make claims in the deceased tenant’s name, provided the tenant is registered at the Land Registry as the owner of the property.

Some minor amendments are also made to the prescribed form notices of claim to acquire the freehold or an extended lease of a house under the LRA 1967.

The Regulations only bring into force Section 27 of LAFRA 2024. So, whilst the qualifying criteria is removed, all other mechanics of lease extensions and freehold purchases of houses and flats and acquisition of the right to manage remain the same.

Other provisions of LAFRA 2024 concerning valuation, increasing the qualifying threshold for right to manage and enfranchisement to 50% non-residential parts, the ban on the creation of new leasehold houses and increasing regulation of service charges and estate management charges have not been brought into force and there is no fixed date set by the Government to implement the remainder of LAFRA 2024. This may depend on the outcome of judicial review proceedings being brought against the Government by various landlords in respect of some of the provisions of LAFRA 2024.

These Regulations are the start of a series of changes intended to be brought into force by the Government which will radically alter the leasehold landscape.

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Caroline using the details below.

These include the Proceeds of Crime Act 2002, the Criminal Finances Act 2017, the Terrorism Act 2000. The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (“5th MLD”) and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLR 2017”). The primary money laundering offences apply to everyone, and you commit an offence if you know or suspect that the property is criminal property.

Real estate transactions are seen by the UK Government and crime agencies as posing a particularly significant money laundering threat. As such the MLR 2017 require estate agents to understand and verify exactly who their customers are and have evidence that they have completed KYC checks. Should an estate agent become suspicious of a prospective customer or existing customer’s activities engaging in money laundering or terrorist financing activity, it must report this to the National Crime Agency. You need to take your anti-money laundering responsibilities very seriously, as if you do not complete KYC checks you would undermine your corporate responsibilities and also place yourselves at risk of prosecution.

Estate agents in the UK are required to comply with, amongst other things, legal and regulatory obligations including those defined under the MLR 2017 and obligations imposed by the Royal Institute of Chartered Surveyors (“RICS”). These place various key requirements upon estate agents, with one being to undertake KYC checks to verify the identities of their customers. For corporate customers these checks will need to be extended to enable you to identify the Ultimate Beneficial Owner and/or those who have ultimate executive control.

The client will need to provide you with documentation confirming identity and primary current residential address. Where they wish to sell their property Land Registry checks should be made to verify the client is the legal owner of that interest and has the right to sell. Where a client wishes to buy a property from one of your clients, or where the client wants advice on a particular purchase, you will also need information clarifying the origin of the funds being used to complete the transaction and a summary of your source of wealth.

You cannot place reliance on kyc carried out by external professionals.  You are ultimately responsible by law for ensuring that the KYC checks have been undertaken properly and comprehensively, you should undertake your own KYC checks.

The information must be used for the sole purpose of completing your KYC checks in order to meet legal obligations.  It must be held confidentially and should not be shared with any third parties unless required to, in order to comply with a regulator or law enforcement authorities.

Estate agents are regulated by HM Revenue & Customs (“HMRC”) to meet requirements of MLR 2017.

If a client fails to provide the necessary information, then you should not act on a client’s behalf.

You are legally required to periodically re-confirm the KYC information you hold about your clients if you remain in an on-going business relationship with them. The period of time that elapses between subsequent KYC approvals is dependent on a number of perceived risk criteria.  We obtain updated ID from our clients every two years.

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Caroline using the details below.

What is Commonhold?

Commonhold is a different way of owning flats that was introduced in 2004. Instead of buying a flat on a lease that eventually runs out, you own your flat outright, forever! You also automatically become part of a group (called a commonhold association) that looks after shared parts of the building, like the hallways, roof, or garden.

In theory, it gives flat owners more control and avoids some of the common problems with leasehold – like paying expensive ground rent or dealing with difficult freeholders. But despite the idea being around for 20 years, fewer than 20 buildings have actually switched to this system.

Why Haven’t More People Used It?

There are a few reasons:

• It’s complicated, people often find the rules and legal aspects hard to understand.
• Developers and freeholders don’t benefit under commonhold, they can’t make money from things like ground rent or service charges, so they don’t push for it.
• Lenders are cautious, banks aren’t used to lending on commonhold properties, so getting a mortgage could be trickier.

What’s Changing?

The government is now looking to make commonhold the standard way to own a flat, instead of leasehold. This comes after a big report from the Law Commission in 2020, which said the current leasehold system is outdated and often unfair.

A new law, the Leasehold and Commonhold Reform Bill, is expected in late 2025. Ahead of that, a White Paper (a kind of policy plan) has set out some big ideas:

Key Proposals

• Commonhold as the default: In future, most new flats would be sold as commonhold, not leasehold.
• Ban on new leasehold flats: Developers wouldn’t be allowed to build new flats under leasehold, except in special cases.
• More say for flat owners: People living in the building would have more control over matters like maintenance and budgeting.
• Easier to switch: It would become simpler for existing leasehold blocks to convert to commonhold.

What Could Get in the Way?

There are still a few bumps in the road:

• Banks might worry about lending for commonhold homes, since it’s unfamiliar territory.
• Developers might resist if they see it as less profitable.
• Legal details need fixing, especially when it comes to buildings that mix homes with shops or offices.

Why Does This Matter?

For a lot of flat owners leasehold has long been a source of stress and frustration. Commonhold could offer a fairer and more transparent alternative, where you truly own your home and have a say in how your building is run.

That said, the change won’t happen overnight. It will take time, but it could be the fresh start many homeowners have been waiting for.

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Shen using the details below. 

As part of The Sherrards Training Academy, we have asked our Legal Assistants and Trainee Solicitors to write articles to support their learning, and also to ensure they start to build on their own personal brand. This article has been fact-checked and proofread by Head of the Residential Real Estate department, Caroline Vernon.

As of 31 January 2025, the Leasehold and Freehold Reform Act 2024 (LFRA 2024) introduces a significant change in leasehold law, offering considerable benefits to tenants seeking to extend their leases or purchase the freehold of their properties. One of the most impactful changes is the removal of the two-year ownership requirement, which has long been a barrier for leaseholders wishing to initiate claims for enfranchisement or lease extensions.

What Was the Two-Year Ownership Requirement?

Under previous legislation, tenants were required to have owned their leasehold property for at least two years before they could make a claim for:

• Enfranchisement (purchasing the freehold of the property).
• Lease extensions (extending the term of the lease).

This requirement often created unnecessary delays for tenants who had recently acquired their leasehold property but wanted to secure their long-term housing through enfranchisement or a lease extension. The time limit also meant tenants risked missing out on opportunities or face higher costs, as property values or lease extension premiums could increase during that time.

What Does the Removal of the Two-Year Ownership Requirement Mean?

From 31 January 2025, tenants will no longer need to wait for two years before they can make a claim for enfranchisement or a lease extension. This change simplifies the process and makes it quicker for leaseholders to secure long-term property rights.

For tenants who have recently acquired their properties, this is a significant benefit. They can now act immediately to secure their investments, without the delay and potential price increases tied to the previous two-year waiting period. By being able to act sooner, leaseholders could also potentially avoid higher enfranchisement premiums or increased lease extension costs that might have risen during the wait.

If you are a landlord or managing agent, this change will also impact how tenant claims are handled. Leaseholders can now initiate claims earlier than before, which may require updates to your processes.

The LFRA 2024 also introduces important changes for the personal representatives of deceased tenants. Under the previous rules, personal representatives were required to bring a lease extension claim on behalf of the deceased tenant within two years of the grant of probate. This two-year time limit for making claims has now been removed.

How Can We Help?

Our team of residential real estate, conveyancing, and tenant specialists can guide you through the agreed lease extension process under the new rules. We offer tailored support to ensure your claim is handled correctly and efficiently. Whether you are a tenant looking to extend your lease or purchase the freehold, or a landlord with questions about these changes, we are here to help you navigate the process with confidence.

If you have questions or concerns about how the reforms might impact you, our team of residential real estate, conveyancing and tenants specialists is available to provide advice and support tailored to your circumstances – Contact us here.