Leasehold reform is ongoing, but full abolition is unlikely in the short term. The Leasehold and Freehold Reform Act 2024 introduces key changes, but new commonhold developments remain rare. The long term ambition of government is to convert existing leasehold structured properties into a new commonhold ownership which is similar to freehold ownership and much like how property ownership is structured elsewhere in the world.
Leasehold is one of the oldest and most debated forms of property ownership in England and Wales. With increasing media attention and government scrutiny, leaseholders often ask: “Will leasehold be abolished?”
The short answer is: not yet — and possibly not completely.
While recent reforms have improved leaseholders’ rights, leasehold remains the dominant structure for flat ownership. However, the government has introduced legislation and proposed further changes that may dramatically alter — or even phase out — aspects of the leasehold system over time.
This guide looks at where things currently stand, what reforms have happened, what’s coming next, and whether leasehold will truly be abolished.
What Is Leasehold?
Leasehold means you own the right to occupy a property (typically a flat) for a set period of time, but not the land or structure.
Key features include:
- Ownership for a fixed term (e.g. 99 or 125 years)
- Payment of ground rent, service charges, and building insurance
- Need for permission to alter, sublet, or own pets
- A freeholder (landlord) owns the land and building
Why Is Leasehold Under Fire?
In recent years, leasehold has been heavily criticised for:
- Escalating ground rents that double every 10–15 years
- Expensive lease extensions and marriage value rules
- Lack of control over managing agents and service charges
- Unfair clauses that trap leaseholders in unsellable or unmortgageable homes
Politicians, campaigners, and consumer groups have called for reform — or outright abolition.
What Reforms Have Already Happened?
Several major changes have taken place in recent years:
1. Ground Rent Act 2022
- Ground rents for new leases must be set at zero (peppercorn)
- Applies to most residential leases granted after June 2022
2. Abolition of the Two-Year Ownership Rule (2025)
- From January 2025, leaseholders no longer need to wait 2 years to qualify for a statutory lease extension
- This makes it easier to extend soon after purchase or before sale
3. Leasehold and Freehold Reform Act 2024 (Pending Implementation)
- Aims to simplify lease extension calculations
- Expected to reduce costs for leases under 80 years and high ground rents
- Proposes stronger redress schemes for unfair practices
Is Leasehold Going to Be Fully Abolished?
While there is strong political momentum, leasehold is not being abolished outright — yet.
Why?
- Millions of flats are already leasehold
- Abolishing leasehold entirely would require massive legal reform
- Replacement systems (like commonhold) are not yet widely adopted
Instead, the focus is on phasing out problematic leasehold terms and making it easier for leaseholders to:
- Extend their leases
- Buy their freehold
- Take over building management
What Is Commonhold and Could It Replace Leasehold?
Commonhold is an alternative ownership model introduced by the Commonhold and Leasehold Reform Act 2002. Under commonhold:
- You own your flat outright (like freehold)
- All owners jointly manage communal areas via a commonhold association
- There’s no lease, ground rent, or landlord
While promising in theory, commonhold has seen very limited uptake due to:
- Legal complexity
- Lack of developer incentives
- No requirement for existing blocks to convert
The government is now reviewing how to revive and encourage commonhold.
What’s Likely to Happen Next?
Further reforms are likely to include:
- Standardised lease extension terms (possibly 990 years with zero ground rent)
- Cap or removal of marriage value
- Mandated transparency in service charges
- Stronger rights to manage buildings
While full abolition remains unlikely in the short term, leasehold may become a much fairer and less exploitative system.
What Should I Do As a Leaseholder?
- Don’t wait for abolition — Reform may take years, and some proposals may not apply retroactively. There are likely to be winners and losers of any eventual reform – we advise against risk taking – if it makes sense for you to act now, do so.
- Extend your lease early — Especially if nearing 80 years or less than 100 years – the earlier you act the cheaper it will be currently
- Explore freehold purchase — Alone (if you own a house) or collectively with neighbours (if you’re in a block)
- Stay informed — Watch for updates from the government
FAQs
Will my lease become freehold automatically?
No. Your lease won’t convert unless legislation specifically provides for it — which isn’t planned at this stage.
Will marriage value be scrapped?
Possibly. The government has indicated its intention to remove or reduce it — but the 2024 Act has not yet implemented this.
Can I convert to commonhold?
In theory, yes — but practically it’s very rare. Your entire building would need to agree and coordinate legal changes.
Will the reforms reduce lease extension premiums?
In some cases, especially for short leases and high ground rent leases. But the details and valuation framework still matter.
Summary: Is Leasehold Being Abolished?
| Question | Answer |
| Will leasehold be scrapped entirely? | ❌ No — not yet |
| Are reforms underway? | ✅ Yes — several passed and more pending |
| Will ground rent end for new leases? | ✅ Yes (2022 Act) |
| Can I still be charged marriage value? | ✅ Yes — for now |
| Should I wait to extend my lease? | ❌ No — costs can increase over time |
Get Expert Support in a Changing Leasehold Landscape
At Extension.Lease, we:
- Monitor all leasehold reform developments
- Advise leaseholders on the best time to extend
Provide expert valuations and guidance tailored to the latest legislation
