This change has come into force as a result of the Leasehold and Reform Act 2024 (LRA2024), which abolished this requirement. The LRA 2024, with many of its provisions yet to come into force, has been heralded as the Act that will give more power to tenants.
The effects in reality
Abolishment of the two-year rule is certainly a step in the right direction for tenants and may remove legal costs in dealing with a deed of assignment. However, it is unlikely to have a monumental effect for a few of the reasons given below:
- On an approximation, it is taking the Land Registry two years to register new owners. A new owner will need to show that they own the property. As such, a new owner will still be waiting approximately two years anyway.
- If your lease is below 80 years, you will still have to pay marriage value.
- The change is subject to challenges by landlords under the Human Rights Act 1998.
What can we expect next?
Whilst the abolishment of the two-year rule is an important step, there is still much to be discussed and brought into effect in 2025. We can expect further reforms on right-to-manage, banning leasehold flats and a white paper on Commonhold and draft Leasehold and Commonhold Reform Bill
How TWM can help you?
Our dedicated team of property solicitors have the specialist knowledge and experience to provide expert guidance with the following:
If you need advice on statutory reforms or any other area within this complex legal field, we’re here to help - contact us today.