Leasehold and Freehold Reform Act 2024: New guide helps to navigate the changes

The Leasehold and Freehold Reform Act 2024, which comes into effect later this month, introduces big changes for landlords, property owners and the conveyancing industry.

To help navigate these updates, the Conveyancing Association (CA) has launched a comprehensive guide.

The association’s director of delivery, Beth Rudolf, said: “Our new guide is designed to provide firms with the necessary information to understand these changes and integrate them into their practices effectively.”

Conveyancing Association guide

The Conveyancing Association guide details the four critical areas impacted by the Act:

• Regulation of rentcharge arrears: This section outlines new rules for recovering arrears on rentcharges, including notice requirements, proof of ownership, service procedures and limitations on recovery methods (A rentcharge is an annual sum paid by a freehold homeowner to a third party who normally has no other interest in the property)
• Recovery of legal costs through service charge: The Act expands the use of Remediation Contribution Orders (RCOs) to recover legal and professional costs associated with building safety issues
• Repeal of Section 125 of the Building Safety Act 2022: This clarifies the implications for landlords, leaseholders and building safety defect remediation
• Higher-risk and relevant buildings – insolvency notifications: The Act introduces new requirements for insolvency practitioners to notify authorities about insolvencies involving high-risk buildings.

‘Managing leasehold and freehold properties’

Ms Rudolf said: “By familiarising themselves with the new requirements, conveyancing firms can ensure compliance and better serve their clients in managing leasehold and freehold properties.

“The Act addresses several important areas, including the regulation of rentcharge arrears, recovery of legal costs through service charges, and new notification requirements for high-risk buildings.”

She adds: “These changes are pivotal in enhancing building safety and transparency in property management.”

The guide can be downloaded from the Conveyancing Association website.