RTM provisions of the Leasehold and Freehold Reform Act 2024 coming into force

On 3 March 2025, the following provisions of LAFRA 2024 will come into force (by the Leasehold and Freehold Reform Act 2024 (Commencement No.3) Regulations 2025):

• The % of non-residential limit on RTM claims is increased (from 25%) to 50%.  This means the RTM will be available to mixed-use premises where the internal floor area used (or intended to be used) for non-residential purposes does not exceed 50% of the premises’ total internal floor area (excluding common parts).  
• The RTM company is not liable for the landlord’s costs of the RTM claim (except where the Tribunal awards costs but this is only available if the claim is withdrawn or ceases to qualify and other conditions are satisfied).
• The FTT (or the LVT in Wales) is now the correct forum to determine compliance with the RTM.  Previously the county court had jurisdiction.
• Landlords cannot charge leaseholders who are not members of the RTM company the non-litigation costs of an RTM claim through the service charge.  Previously this was allowed the lease permitted it. 

Effective immediately: Changes to landlord’s voting powers – a landlord’s maximum votes in the RTM is capped at one third of all votes.