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The Impact of the Leasehold and Freehold Reform Act 2024
If you hold a long lease or are a landlord holding property subject to long leases, this affects you.
Following last week’s surprise announcement of a general election, the Government has rushed through the Leasehold and Freehold Reform Act 2024 (the “Act”) which will grant homeowners further rights and powers over their homes.
Jeff Smith, Labour MP for Manchester Withington, said:
“It is not perfect, [but] It is a step forward, so we are pleased to support this legislation going on to the statute books this evening”
The bill has received Royal Assent and become law.
What Is The Impact Of Leasehold and Freehold Reform Act 2024?
- Tenant right to freehold acquisition: now easier and cheaper, including that Landlord costs will no longer be payable by the Tenant;
- Longer lease extensions: standard lease extension term will be 990 years for both houses and flats (increased from 50 years for houses and 90 years for flats);
- Service charges to be demanded (by Managing Agents/Landlords) in a standard form: Tenants can therefore more easily scrutinise and challenge them;
- Challenging unreasonable charges: it will be easier to challenge unreasonable service charges, empowering leaseholders to dispute them and seek resolution;
- Prohibition on sale of new leasehold houses: Except in exceptional circumstances, new leasehold houses are banned. Purchasers must own freeholds to their homes from the outset;
- Properties which are freehold and leasehold forming part of the same estate have the same rights: Extends access to redress schemes to challenge poor Landlord and/or Managing Agent practice;
- Removal of ownership requirement to apply for enfranchisement. The requirement for a leaseholder to have owned their flat for two years before they can extend their lease is removed;
- Commercial floor space implications: Previously, buildings with more than 25% of its floor space as commercial (e.g. shops and/or office space on the ground floor) prevented Tenants (collective enfranchisement) from acquiring the freehold or the right to manage. The non-residential threshold has been increased 50%;
- Setting a maximum fee for the provision of home buying and selling information: the Act will set a maximum time and fee for the provision of home buying and selling information.
The Following Were Not Adopted:
- Proposed ground rent reforms (to remove ground rent or introduce a cap) and prohibition of forfeiture;
- the Renters (Reform) Bill, that sought to abolish no-fault Assured Shorthold Tenancy evictions.
Implementation
We do not yet know from when these changes will have effect and many questions remain open. For example, (i) the impact of the Act on contracts which have been exchanged and whether parts of those contracts will be void; (ii) the impact on current pending applications for lease extensions – if for instance withdrawn; and (iii) calculations of the value for a lease extension.
Conclusion
In summary, the Act aims to provide leaseholders with further rights, powers and protections over their homes to try and make ownership and management of leasehold properties fairer and more transparent.
We would not be surprised if further reforms are likely and we will publish an update after the King’s Speech, which will be delivered during the State Opening of Parliament (expected to take place on 17 July 2024).
To discuss any of the points raised in this article, please contact Daniel Blake or fill in the form below.
Immigration Route for an International Sportsperson: A Case Study of a Football Manager’s Visa Requirements
In the globalised world of sports, the mobility of talent is crucial. Football managers, akin to players, often find themselves working across various countries. The immigration process for a football manager involves navigating a complex web of legal requirements. This article aims to elucidate the key steps and legal prerequisites involved in obtaining a visa for an international football manager, focusing on a recent case involving Liverpool FC‘s new appointment.
Case Study: Arne Slot’s Appointment at Liverpool FC
The football community was abuzz when Liverpool FC announced that Arne Slot, the former Feyenoord boss, would succeed Jurgen Klopp as their manager. Slot’s era at Anfield is set to begin on June 1, but his appointment is contingent upon receiving a work permit from the UK government. This situation provides a practical lens through which we can examine the visa process for football managers.
Visa Categories For Sports Professionals
For a football manager seeking to work in the UK, the most relevant visa category is the “T2 Sportsperson Visa,” which has been rebranded as the “International Sportsperson Visa.” This visa is designed for elite sports professionals, including managers and coaches, who are internationally recognised and whose employment will make a significant contribution to the development of their sport at the highest level in the UK.
Key Legal Requirements
- Sponsorship by a Recognised Body:
- Governing Body Endorsement: Slot must obtain an endorsement from The Football Association (The FA), which confirms his skills and reputation as an elite sportsperson and his anticipated contribution to football in the UK.
- Certificate of Sponsorship: Liverpool FC must issue a Certificate of Sponsorship (CoS). The club must be licensed by the Home Office to issue such certificates.
- Eligibility Criteria:
- Professional Standing: Slot needs to demonstrate significant achievements, such as his successful tenure with Feyenoord and his potential impact on football in the UK.
- English Language Proficiency: Slot must meet the English language requirement, typically by passing an approved English language test or holding an academic qualification taught in English.
- Maintenance Funds: Slot must show he has sufficient funds to support himself without relying on public funds, usually having at least £1,270 in his bank account for 28 days before the application.
- Application Process:
- Online Application: The application for the International Sportsperson Visa is submitted online, including the endorsement from The FA and the Certificate of Sponsorship from Liverpool FC.
- Biometric Information: Slot must provide biometric information (fingerprints and a photograph) at a visa application centre.
- Fees: The application fee and the Immigration Health Surcharge (IHS) must be paid. The IHS grants access to the UK’s National Health Service (NHS) during his stay.
- Validity and Extensions:
- Initial Period: The International Sportsperson Visa is typically granted for up to three years.
- Extensions: Extensions can be applied for if Slot continues to meet the eligibility requirements, including having a valid Certificate of Sponsorship.
- Path to Settlement:
- Indefinite Leave to Remain (ILR): After five years in the UK on this visa, Slot may be eligible to apply for ILR, allowing him to live and work in the UK indefinitely. He must meet residency requirements and demonstrate continuous employment in his role.
How The Process Works For Arne Slot
For Slot to start working as Liverpool FC’s manager, the following steps are necessary:
- Obtaining Endorsement and Sponsorship: Slot needs an endorsement from The FA, confirming his eligibility. Liverpool FC must also secure a Certificate of Sponsorship.
- Application Timeline: Slot can apply for his visa up to three months before his start date on June 1. If he is inside the UK, a decision is typically made within three weeks; if outside, it may take up to eight weeks.
- Duration and Extension: The initial visa will last three years, with the option to extend, provided Slot’s employment conditions remain unchanged.
Likelihood of Approval
Given Liverpool FC’s announcement and the absence of any known issues in Slot’s past, it is highly likely that his visa application will be approved. The club’s confidence in announcing his appointment suggests they foresee no significant barriers in obtaining the necessary work permit.
Conclusion
The immigration route for a football manager like Arne Slot involves a meticulous process to ensure only the most qualified professionals are granted entry. By fulfilling legal requirements, such as obtaining endorsements, securing sponsorship, and meeting eligibility criteria, Slot can begin his tenure at Liverpool FC. Understanding these legal intricacies is essential for clubs and managers alike to navigate the process successfully. As international sports continue to evolve, staying informed about immigration policies will remain crucial for the seamless movement of sporting talent.
If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.
Breaking Down the Corporate Investment Landscape: A Guide for Entrepreneurs and Investors
In the dynamic realm of corporate finance, various types of investments cater to the diverse needs of entrepreneurs, investors, and businesses. From early-stage startups to established enterprises, understanding the terminology and nuances of different investment options is crucial for understanding the funding landscape effectively.
By way of a high-level summary, I will explore some key types of investments and their characteristics, bearing in mind that many of these sources and terms overlap and are sometimes used interchangeably. Likewise, while the following may seem chronological, every business has a unique lifecycle and may rely on one or more of these models at any stage.
Bootstrapping: Harnessing Resourcefulness and Independence
Bootstrapping epitomises the spirit of self-reliance and resourcefulness, as entrepreneurs fund their ventures without external financing. By leveraging personal savings, revenue streams, and sweat equity, bootstrapped startups tackle the challenging terrain of business without diluting ownership or control. While bootstrapping demands resilience and discipline, it empowers entrepreneurs to retain autonomy and drive their ventures toward sustainable success.
Notable examples include companies like MailChimp and GoPro, which initially thrived without initial external funding.
Seed Rounds: Early-Stage Capital For Growth
Seed rounds provide the initial capital that startups need to develop their product, conduct market research, and launch initial operations. This funding typically comes from a mix of personal connections (friends and family) and external investors such as angel investors and seed venture capital firms explored in more detail below. These rounds are crucial for laying the groundwork for future growth and attracting further investment. Seed funding amounts can range from tens of thousands to a few million pounds, depending on the startup’s needs and the investor’s confidence in its potential.
Notwithstanding the close relationships when friends and family are involved, clear agreements are crucial to maintaining relationships and setting expectations.
Series A, B, C and Beyond: Scaling With Institutional Investors
As startups progress beyond the early stages, they may seek additional funding rounds to fuel growth and expansion. Commonly referred to as Series A, B, C, and subsequent rounds, these involve raising capital from institutional investors like venture capital firms and private equity investors. Each series represents a milestone in the startup’s journey, with larger funding rounds enabling scalability, market penetration, and product development.
Series A typically focuses on refining the business model, Series B on scaling operations, and Series C on expanding market reach.
Venture Capital: Fuelling Innovation and Growth
Venture capital (VC) provides funding to startups and early-stage companies with high growth potential. Venture capitalists invest in exchange for equity ownership and often take an active role in guiding the strategic direction of the companies they support. VC funding enables startups to scale rapidly, penetrate markets, and realise their full growth potential.
Typical investments range from hundreds of thousands to several million pounds, depending on the startup’s stage and growth trajectory.
Angel Investment: Early Support From Visionary Individuals
Angel investors are individuals who provide capital to startups in exchange for equity ownership. These visionary investors play a crucial role in the early stages of a startup’s journey, providing financial support, mentorship, and industry connections. Angel investment rounds typically occur in the seed or early stages of a startup’s development, helping founders turn ideas into viable businesses.
Typical investments range from tens of thousands to a few hundred thousand pounds, depending on the startup’s potential and the investor’s appetite for risk.
Private Equity: Driving Expansion and Value Creation
Private equity (PE) firms specialise in investing in established companies with the aim of driving growth, operational efficiency, and value creation. Unlike venture capital, which focuses on early-stage startups, private equity typically targets mature businesses poised for expansion or restructuring. PE investors provide capital in exchange for equity ownership, often leveraging buyouts or recapitalisations to fuel growth initiatives.
Investments can range from millions to billions of pounds, depending on the size and scope of the target company.
Debt Financing: Leveraging Borrowed Capital
Debt financing involves borrowing funds that must be repaid over time, typically with interest. This type of financing can come from various sources, including banks, financial institutions, and private lenders. Debt financing typically would not dilute ownership, making it an attractive option for businesses looking to retain control. However, regular repayments can strain cash flow, especially for businesses with inconsistent revenue streams.
Debt financing can often be used in conjunction with equity financing to optimise a company’s capital structure and minimise the cost of capital.
Overlap and Synergy: Finding The Right Mix Of Investments
While each type of investment has its unique characteristics, it’s essential to recognise the overlap and synergy between different funding sources. For example, angel investors may participate in multiple rounds, providing ongoing support to startups as they evolve.
Similarly, venture capital and private equity investments may complement each other, with VC funding fuelling early-stage growth and PE investment driving expansion and scalability. Debt financing can also be strategically integrated to leverage growth without diluting ownership.
In Conclusion
Understanding the diverse landscape of corporate investments is essential for entrepreneurs, investors, and businesses alike. Whether you’re launching a startup, seeking funding for expansion, or exploring investment opportunities, it’s crucial to consider the various types of investments available and their implications for your business’s growth trajectory.
As a London-based law firm specialising in corporate and commercial matters, we offer comprehensive legal guidance and support to entrepreneurs, investors, and businesses navigating the funding landscape. From structuring investment agreements to facilitating due diligence processes, our expertise helps our clients achieve their financial objectives and drive success in their ventures.
To discuss any of the points raised in this article, please contact Adam Convisser or fill in the form below.