| Impact of Leasehold and Freehold Reform Act (LAFRA) 2024
| This draft wording alerts buyers to the uncertain status of the leasehold reform legislation and manage expectations. It ensures lawyers clearly disclose that while major changes are anticipated, they are not yet effective and may affect future leasehold costs or decisions.
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| Fire Safety and Asbestos Reports
| Proposed wording advises the buyer concerning Fire Risk and Asbestos Assessments. In this instance there is a shop unit/non-residential area in the building. It highlights the legal duty (effective from 1 October 2023) to carry out and record a Fire Risk Assessment under the Fire Safety Order 2005, and seeks confirmation from the buyer if any shared areas exist that might require compliance.
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| Registration of the Property Address
| This wording explains that the property’s new address must first be registered with the Local Authority before Royal Mail will recognise it. It confirms that this is being checked, but if not yet registered, the buyer can complete Royal Mail’s online form once the property is capable of receiving post.
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| Lease Extensions and Negotiating with Landlords
| This draft advice sets out concerns about informally negotiating a lease extension directly with the landlord, as this could result in a lease that fails to meet lender requirements. It explains that extending the lease under the formal statutory process removes the ground rent (reducing it to a peppercorn), ensuring the lease aligns with the Leasehold and Freehold Reform Act 2024 and remains mortgageable with major lenders.
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| Nuisance and Annoyance Covenant
| This draft explains that the buyer must not cause a nuisance or annoyance to neighbours, covering activities that interfere with others’ comfort or enjoyment of their property. It highlights that “annoyance” is a broad term,wider than “nuisance”,and that even lawful actions, such as building an extension that affects a neighbour’s view, could breach this covenant.
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