Significant changes to leasehold law came into effect in early 2025, bringing greater flexibility and reducing costs for leaseholders across the UK. At Boxall Brown & Jones, we’ve outlined the key updates and what they mean for property owners in Derbyshire.
Key Changes Introduced in 2025
- Two-Year Rule Abolished
From 31 January 2025, leaseholders no longer need to have owned their property for two years before applying to extend their lease or purchase the freehold. This removes a key barrier for many homeowners. - Expanded Right to Manage (RTM)
From 3 March 2025, more mixed-use buildings qualify for the RTM. The threshold for non-residential use has increased from 25% to 50%, giving more leaseholders the ability to take control of their building management. - Right to Manage Costs Reduced
Leaseholders pursuing RTM claims are no longer responsible for covering the freeholder’s non-litigation legal fees, lowering upfront costs.
What’s Coming Later in 2025
- New Valuation Methodology: Marriage value will be removed from lease extension/freehold purchase calculations, likely reducing costs.
- New Valuation Rates: The government will confirm updated rates in secondary legislation.
- Online Calculator: A tool will soon be available to help leaseholders understand potential costs.
- Building Insurance Transparency: Steps are being taken to make service charge and insurance fees more transparent.
- Strengthened Protections: Further consultations are exploring how leaseholders can be better protected against unfair charges and practices.
What This Means for You
These changes are designed to make homeownership fairer and more accessible. For Derbyshire homeowners, this could make lease extensions or freehold purchases quicker, cheaper, and easier to understand.
Final Thoughts
If you’re a leaseholder and want to know how these changes might affect your property, our team is here to guide you through your options. Whether you’re thinking about selling, extending your lease, or exploring property management, we’re here to help.
Get in touch with our team today to find out more:
- Derby Office – [email protected] or call 01332 383838
- Lettings Team – [email protected] or call 01332 384438
- Belper Office – [email protected] or call 01773 880788