Quarterly BAS Due (July–September)
Form 1099-NEC & Contractor Payment Reporting Check
Why this matters.
The Leasehold and Freehold Reform Act 2024 is being brought into force in phases, and freeholders, managing agents and landlords who haven’t kept pace risk falling foul of rules that are now live rather than pending. Key provisions already in effect include the ban on freeholders and managing agents taking commission on buildings insurance — replaced with a transparent, fair handling fee that must be disclosed to leaseholders — and the removal of the two-year ownership qualification period that previously stopped new leaseholders extending their lease or buying their freehold. Standard lease extensions now run to 990 years with ground rent reduced to a peppercorn, and the Right to Manage non-residential floorspace threshold has been raised from 25% to 50%, opening Right to Manage claims to buildings with more shops, offices or other commercial units than before.
Other provisions are still moving, which makes this an area to keep checking rather than tick off once. The abolition of “marriage value” from lease extension and enfranchisement premium calculations has faced legal challenge from freeholder groups, creating real uncertainty over how premiums already agreed or in progress should be calculated. Standardised, transparent service charge demands and annual accounts are being introduced through further secondary legislation, and a separate consultation on capping or reducing ground rents on existing long leases could bring further legislation. A freeholder, managing agent or landlord that assumes the Act is “done” risks continuing insurance commission practices that are now banned, miscalculating premiums, or mishandling a Right to Manage claim that would previously have failed on the floorspace test.
