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Leasehold and Freehold Reform Act 2024 (LAFRA): Right to Manage Update
Right to Manage (RTM) reforms introduced by LAFRA are to be implemented next Monday, 3 March 2025. As anticipated, these changes will present new challenges for those who own and manage properties in England and Wales.
The table below summarises both the forthcoming changes and implications.
| IMPLEMENTATION DATE: 3 MARCH 2025 | ||
| Topic | Key Change | Implications |
| RTM – Procedure | The non-residential limit for RTM claims increases from 25% to 50%. This means that buildings with non-residential areas up to 50% of the total internal floor area now qualify for RTM. | More mixed-use buildings will qualify, increasing the eligibility for RTM companies. More opportunities for leaseholders to assume control via RTM. |
| RTM – Cost Reforms | RTM companies and members are no longer automatically liable for landlords’ costs when initiating a claim. Costs can only be recovered if (i) ordered by a Court or Tribunal; (ii) the RTM Company withdraws the claim or it ceases to have effect; or (iii) the RTM Company acts unreasonably. Further, Landlords cannot recover costs incurred before a Tribunal or Court. Lease clauses allowing landlords to recover these costs are rendered void. Landlords are also prohibited from recovering costs via service charges from non-participating tenants. | Reduced ability to recover legal costs from RTM companies, which also reduces the financial risk for RTM companies and encourages greater participation from leaseholders. Limited avenues to recoup expenses unless specific conditions are met. |
| RTM: Amendments to Model Articles | A cap on landlords’ voting rights, now limited to one-third of the total votes exercised by qualifying tenants. | Landlords’ control over RTM decisions is reduced and further enhances leaseholders’ control over property management. |
| Jurisdictional Changes | The First-tier Tribunal (FTT) will replace the County Court in enforcing obligations under the RTM legislation. Applicants can approach the County Court to enforce FTT orders against third parties (excluding monetary payments). | Landlords will need to familiarise themselves with FTT rules and procedures. |
The RTM changes reflect the Government’s aim to empower leaseholders to take greater control in respect of the management of their properties and we await implementation of the further promised reforms with interest.
To discuss any of the points raised in this article, for more guidance on the impact of LAFRA 2024 or assistance with property-related disputes, please contact Daniel Blake (Partner) and Ann Goh (Solicitor) or fill in the form below.
This article does not constitute legal advice.
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British Farmers Protest Inheritance Tax in Central London
Farmers from around the UK came to Whitehall on Monday to protest against changes to inheritance tax (IHT) reliefs. Ben Rosen TEP, Partner and head of the Quastels Private Wealth and Tax team, was in the heart of the action to find out just what they had to say.
Why Farmers are Protesting
The farmers at the protest told Ben that they were worried for the future of British farming if the government proceeds with its plans to limit claims for agricultural property relief (APR) and business property relief (BPR) to a rate of 50% on assets over £1 million. There were concerns that given the high value of farmland compared to the profits made from agriculture, farmers would not be able to afford to pay IHT on death without selling the farm.
This could mean families losing farms they have owned for generations. Farmers also thought it likely it would deter the next generation from pursuing a career in agriculture. Often the children of farming families have spent most of their lives working for little financial reward on the family farm, in the expectation that one day they will inherit it. If they think the farm is instead going to have to be sold to pay tax when their parents die, that will look a lot less attractive.
The Impact of These Changes
Farmers spoke of their anger at the proposed changes, and thought more direct action such as withholding food might follow if the government continues on its course.
The changes to APR and BPR mean that farmers, landowners and business owners are going to be more reliant than ever on expert advice to help them plan their succession in the most tax efficient way
The team at Quastels are here to help. Ben has been joined by Jack Burroughs TEP, previously of the Country Land and Business Association’s tax team. Between them they have a great depth of experience and expertise in advising farmers, landed estates and family businesses.
Get In Touch
For those worried about the impact changes to IHT reliefs could have for them, Ben and Jack will be able to help them understand their options and find the most tax-efficient solutions that meet the needs of their families and businesses. They also have colleagues at Quastels who specialise in helping farms, estates and businesses in other areas of law, including employment, property, commercial law and dispute resolution.
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Quastels Advises on Partnership Between ELEMIS & Aston Martin Aramco Formula One™ Team
Quastels are proud to have advised on the new multi-year partnership between Aston Martin Aramco Formula One™ Team, and our long-term client, ELEMIS. Led by Corporate & Commercial Legal Director Ann-Maree Blake, the deal sees ELEMIS become the first Official Skincare Partner of Aston Martin Aramco Formula One™ Team, tapping into the growing female fan-base of the sport.
ELEMIS Champions Inclusivity in F1
ELEMIS, through this trailblazing partnership, are working to promote inclusivity within Formula 1, as the latest study suggests that the fastest growing fanbase are women aged 16 to 24, and that the female demographic now make up 41% of the sport’s overall fanbase. Ann-Maree led contract negotiations on behalf of ELEMIS, ensuring the B Corp company’s sustainability focus was spotlighted in the deal, meeting with Aston Martin Aramco’s own sustainability goals. This partnership not only marks an incredible milestone in the world of Formula 1 but also sets a new standard for innovation, sustainability, and inclusivity within the sport.
The deal includes ELEMIS launching exclusive, limited-edition product collections, offering guests at the Aston Martin Aramco Paddock Club Suite experiential treatments, and in May, at the Monaco Grand Prix, ELEMIS will create a luxury spa experience on board the Aston Martin Aramco yacht- all within the first year of the partnership.
Testimonial
“Working with Ann-Maree Blake at Quastels was nothing short of extraordinary. Her unparalleled expertise, strategic vision, and tireless commitment to our success transformed what could have been a complex deal into a flawless, high-impact partnership with the Aston Martin Aramco Formula One™ Team. Ann-Maree went above and beyond, not just meeting but exceeding our expectations at every turn. Her insight, professionalism, and passion for excellence made her an indispensable part of this landmark deal. Simply put, she is the gold standard in legal support.”
Sean C. Harrington, ELEMIS Co-Founder & CEO.
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