By extension.lease – Experts in lease extensions and freehold purchase
The leasehold system in England and Wales has been under scrutiny for years and reform is finally happening. The Government’s new legislation promises to reshape how lease extensions and freehold purchases work, aiming to make the process fairer and more affordable for flat owners.
But what does that really mean for you as a leaseholder?
Here’s our clear, up-to-date guide to the Leasehold and Freehold Reform Act 2024, what’s changed so far, and how to plan your next move with confidence.
What’s Changing in Leasehold Law?
The Leasehold and Freehold Reform Act 2024 is a landmark piece of legislation designed to modernise how leasehold property ownership works.
Its aims are clear: to reduce costs for leaseholders, make valuation methods more transparent, and give flat owners more control over their homes.
However, many of the fine details, especially how premiums will be calculated will only become clear once the Government publishes the secondary legislation.
Until then, understanding the key reforms will help you decide whether to extend your lease now or wait.
The End of “Marriage Value”
One of the headline reforms is the proposed abolition of marriage value which is an additional cost currently triggered when a lease has fewer than 80 years left to run.
At present, leaseholders below that threshold must pay the freeholder half of the “value uplift” created by the lease extension. The reform would scrap this entirely, potentially saving thousands.
Who benefits most: Leaseholders with under 80 years remaining.
Who may not: Those with longer leases may see little change and in some cases, higher costs if other rates shift unfavourably.
A Cap on Ground Rent for Valuation Purposes
Another significant change is a limit on the ground rent used in premium calculations capped at 0.1% of the property’s value.
If your ground rent is currently high, that could reduce your extension cost considerably. But for leases with nominal ground rents, the impact may be minimal.
Good for: Leaseholders with high ground rents.
Limited effect for: Those already on peppercorn or low rents.
New Standardised Valuation Rates
Currently, valuers rely on market-tested assumptions such as deferment and capitalisation rates when calculating lease extension premiums.
The new law gives the Government the power to set national “prescribed” rates, aiming for consistency and transparency.
That could simplify the process but it also means leaseholders’ costs may rise or fall depending on where those rates are fixed.
If yield rates rise, premiums could go down.
If yield rates fall, premiums could increase even without marriage value.
When Will the New Rules Start?
Although the 2024 Act has been passed, most of it is not yet in force. The Government must still publish detailed regulations and valuation rules before the new system can operate.
Experts currently expect implementation to begin in stages through 2026 and 2027, but the exact timeline is uncertain and there are no current guarantees they will even be implemented.
And that uncertainty has recently grown due to a major legal challenge.
Legal Challenge: Why the Courts Could Slow Reform
In late 2025, a group of large freeholders brought a judicial review challenging parts of the Leasehold and Freehold Reform Act. Their claim argued that the reforms particularly the abolition of marriage value and the cap on ground rent infringed their property rights under human rights law.
The High Court dismissed the challenge in October 2025, ruling that the reforms were lawful and proportionate. That was an important win for leaseholders but the matter may not be over yet.
What This Means for You
- Possible appeal: Freeholders are expected to seek permission to appeal, potentially to the Court of Appeal or even the Supreme Court.
- Likely delays: The Government is unlikely to finalise or bring key valuation regulations into force until this process concludes, meaning real-world implementation could be pushed back to late 2026 or even 2027.
- Lingering uncertainty: Until all appeals are resolved, the practical details of the new regime including the rates used in calculations remain unsettled.
The Takeaway
If you were waiting for reform before acting, this legal wrangling means the wait may be longer than expected.
While the Act itself is still valid law, the machinery that makes it work is effectively paused. In short: the reforms are coming, but they’re not around the corner just yet.
Should You Extend Now or Wait for the Reform?
Whether you should act now or hold off depends entirely on your circumstances, especially your lease length, ground rent, and future plans.
You may wish to extend now if:
- Your lease is near the 80-year mark (to avoid triggering marriage value under current rules).
- You’re planning to sell or remortgage soon.
- You want clarity and control over current costs.
You might consider waiting if:
- Your lease is long (100+ years) and you’re in no rush.
- Your ground rent is high and the future cap could benefit you.
- You’re comfortable with potential delays until 2026–27 or beyond.
At extension.lease, our valuation experts can model both scenarios side-by-side so you can see how different assumptions including possible rate changes affect your premium.
How Extension.Lease Helps You Plan with Confidence
At extension.lease, we combine the expertise of Blakes Chartered Surveyors and Arcadia Law to give you a complete, seamless lease extension service.
- Valuation precision: We estimate your premium & costs under current rules and provide an initial estimate of the total lease extension cost at the outset of the process free of charge and without obligation so you can proceed in confidence.
- Expert legal support: Arcadia Law handles all statutory notices, contracts and registrations.
- Straightforward advice: No jargon, no hidden costs, just clear guidance every step of the way.
- Integrated service: Valuation and legal under one roof for a faster, smoother process.
Our teams are genuine experts in the field of leasehold valuation and law with decades of combined experience and thousands of lease renewals completed successfully.
The Bottom Line
Leasehold reform is coming but it’s not here yet.
The High Court decision has cleared the way, but possible appeals mean delays are likely. For many leaseholders, waiting may take years, not months.
If your lease is already short, or you’re unsure how the reforms might affect your costs, get expert advice now.
A tailored valuation could show whether extending today actually saves you money in the long run.
extension.lease — lease extensions in London & Nationwide made simple by expert lease extension surveyors and solicitors.
Will lease extensions become cheaper under the 2025 leasehold reforms?
Possibly but not for everyone. The removal of marriage value should make extensions cheaper for leaseholders with under 80 years left, but those with longer leases may see little change or could end up being more costly. The final cost impact will depend on the new valuation rates set by Government once the Act takes effect.
What is “marriage value” and why does it matter?
Marriage value is the extra value created when a short lease is extended. Under current law, leaseholders must share that uplift with the freeholder once their lease drops below 80 years. The reform abolishes marriage value, which could save thousands for those with shorter leases if implemented and not counter-balanced by other changes in the valuation formula.
When will the Leasehold and Freehold Reform Act come into force?
Although the law has been passed, most of its provisions are not yet active. Secondary regulations including how premiums will be calculated are expected between 2026 and 2027, though ongoing court challenges could delay implementation into 2027 or beyond.
Has the leasehold reform been challenged in court?
Yes. Major freeholders recently launched a High Court challenge against the reforms, arguing that abolishing marriage value and capping ground rent infringed their property rights. The High Court dismissed the claim in October 2025, but a potential appeal (we believe this is likely) could still delay the rollout of the new rules.
Should I extend my lease now or wait for the reform?
It depends on your situation. If your lease has less than 100 years remaining, extending now could higher future costs. If your ground rent is high and your lease is long with circumstances permitting, you might benefit from waiting though that comes with risk given the current uncertainty around actual implementation, timing and appeals. A professional valuation will help you make the best decision.
