Leasehold Reform & Legislation

Last updated: August 2026

Leasehold reform has been announced, legislated for, delayed and challenged in the courts — sometimes all within the same year. The result is a wide gap between what people assume is now law and what has actually taken effect. Most of the headline changes you may have read about are still proposals, not rules a valuer can use today.

This page sets out, in plain terms, what has genuinely changed, what is on the statute book but not yet switched on, what is still only a proposal, and what that means if you're weighing up whether to extend your lease now or wait.

What's Actually in Force Today

The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, but Royal Assent and "in force" are two different things — large parts of that Act are still waiting for the Government to switch them on. Here's the current position, split into three groups.

Already Law

The two-year ownership rule was scrapped in January 2025 — you can serve a lease extension notice from day one of owning your flat
Ground rent on new long leases has been capped at a peppercorn (effectively zero) since 2022

Passed, But Not Switched On

Scrapping marriage value from premium calculations
Extending new leases by 990 years instead of 90
Capping ground rent at 0.1% of freehold value for premium purposes
Removing the freeholder's right to recover their legal costs from you

Still Just a Proposal

A £250 annual cap on existing ground rents
Commonhold replacing leasehold as the default for new flats

The Draft Commonhold and Leasehold Reform Bill

In January 2026 the Government published a further, separate piece of draft legislation aimed at going beyond the 2024 Act, confirmed as a Parliamentary priority in the King's Speech that May. It's currently being scrutinised by a select committee — it has not yet had its first reading in Parliament, so nothing in it is law.

The draft Bill proposes to:

Make commonhold the default ownership structure for new flats, with new leasehold flats banned outright
Give leaseholders in existing blocks a route to convert to commonhold where at least half agree to it
Cap existing ground rents at £250 a year, tapering down to a peppercorn over a 40-year transition
Fix a number of drafting errors in the 2024 Act that only primary legislation can correct

A government consultation on carving out certain "quid pro quo" leases from the £250 ground rent cap opened in July 2026 and closes on 27 August 2026 — another sign of how much detail is still being worked out before this becomes enforceable law.

Why Implementation Keeps Slipping

Three separate obstacles are holding back the parts of the 2024 Act that would most affect lease extension premiums:

Drafting errors in the 2024 Act — some provisions were passed with mistakes that secondary regulations can't fix, so they need new primary legislation to correct.
No valuation rates yet — the capitalisation and deferment rates that any new premium formula depends on haven't been set by Government, so valuers have no framework to apply even where the law has commenced.
An active court case — a group of major freeholders launched a judicial review in late 2025 arguing that scrapping marriage value, capping ground rent and removing cost recovery breaches their human right to property. The High Court dismissed the challenge, but permission to appeal was granted and the case now sits with the Court of Appeal, with judgment still awaited as of August 2026. The Government is very unlikely to commence the valuation changes while that appeal is live.

When Will Reform Actually Take Effect?

There's no published commencement date for the 2024 Act's valuation changes, and the new draft Bill hasn't even reached Parliament yet. Government statements point to the changes landing towards the end of the current Parliament — realistically 2028 or 2029 — and even once a Bill passes, there's typically a further gap before it actually commences and can be relied on.

Should You Wait, or Extend Now?

There's no single right answer — it depends on your own lease. As a general guide:

Waiting May Be Reasonable If

Your unexpired term is comfortably above 90 years
Your ground rent is modest and fixed, not doubling or index-linked
You have no plans to sell or remortgage in the near term
You're comfortable absorbing the risk that reform is delayed further

Extending Now Usually Pays Off If

Your lease is between 80–85 years, close to the marriage value threshold
Your lease is already under 80 years, where the premium keeps rising under current law
You're planning to sell or remortgage in the next year or two
Your ground rent doubles periodically or is linked to an index

If you'd like a clearer picture of where your own lease sits, our lease extension calculator gives an instant estimate, or you can get in touch and we'll talk you through it.

Frequently Asked Questions

Has marriage value actually been abolished?

Not yet in practice. The 2024 Act provides for its abolition, but that section hasn't been commenced and no date has been set. If your lease has less than 80 years left, marriage value is still charged today.

When will the leasehold reforms come into force?

There's no published timetable. Government signals suggest the valuation changes may not land until the end of this Parliament — realistically 2028 or 2029 — and legislation still needs to be commenced after it passes before it has any practical effect.

Should I wait for reform before extending my lease?

It depends on your lease term and plans. If you're comfortably above 90 years with a low fixed ground rent and no plans to sell, waiting can be reasonable. If you're near or below 80 years, or might sell or remortgage soon, extending now usually works out cheaper than waiting.

Will my new lease term be 90 years or 990 years?

Ninety years added to your existing term, at a peppercorn ground rent. The 990-year extension is written into the 2024 Act but that provision hasn't been brought into force.

Is the £250 ground rent cap already law?

No. It's a proposal in the draft Commonhold and Leasehold Reform Bill, which hasn't yet been introduced to Parliament. A consultation on exempting certain leases from the cap closes on 27 August 2026.

Do I still need to have owned my flat for two years to extend?

No. That requirement was scrapped on 31 January 2025, so you can serve a valid notice as soon as you own the flat — even the day you complete your purchase.

Still Have Questions?

Get in touch and we'll talk you through where things stand and what it means for your lease.