Around 4.98 million homes in England are leasehold. For decades, the system governing those properties has been widely criticised as unfair, opaque, and costly for leaseholders.
The Leasehold and Freehold Reform Act received Royal Assent in May 2024 – but here’s the thing most people miss: becoming law and coming into force are two very different things.
For conveyancers advising clients on leasehold transactions right now, knowing exactly what has changed, what hasn’t yet, and what’s still coming is essential, so here is the topic in 5 minutes:
What does the Act set out to do?
The Act’s aim is to make it easier, cheaper and fairer for leaseholders to extend their lease or buy their freehold. Its headline changes include:
- 990-year lease extensions – up from 90 years for flats and just 50 years for houses
- Removal of marriage value – eliminating the premium leaseholders currently pay on leases under 80 years, potentially saving thousands
- No freeholder cost recovery – leaseholders will no longer have to pay their landlord’s legal and valuation costs when making an enfranchisement or extension claim
- Ban on new leasehold houses – all newly built houses must be sold freehold (with very limited exceptions)
- Service charge transparency – standardised service charge formats, insurance commission bans, and easier Tribunal challenges
- Right to Manage expanded – the non-residential floorspace threshold raised from 25% to 50%, allowing more buildings to qualify
What is actually in force right now?
This is where it gets important. Most of the Act’s provisions require secondary legislation before they take effect. As of early 2026, only three tranches of the Act are live:
- From 24 July 2024: rentcharge enforcement rules and certain Building Safety Act amendments
- From 31 January 2025: removal of the two-year ownership requirement – leaseholders can now pursue a lease extension or enfranchisement claim immediately on purchase, without waiting two years
- From 3 March 2025: Right to Manage threshold increased from 25% to 50% non-residential floorspace; RTM companies no longer automatically liable for landlord’s costs on a claim notice
All other provisions, including the 990-year extensions, removal of marriage value, and the ban on new leasehold houses, remain to be commenced by statutory instrument. The government has not confirmed a timetable for the remaining provisions, and a judicial review challenging aspects of the valuation methodology is ongoing, which may affect implementation further.
What’s still coming – and what to watch for
Beyond the Act itself, the government has signalled further leasehold reform ahead:
- Commonhold revival – plans to ban the creation of new leasehold flats and reinvigorate commonhold as the default tenure for flats
- Ground rent regulation – proposals to cap or regulate ground rents for existing leases (ground rent abolition for new leases is already in force under the Leasehold Reform (Ground Rent) Act 2022)
- Forfeiture reform – ending the ability for freeholders to forfeit a lease over debts as low as £350, a provision widely regarded as disproportionate
- Valuation rates – deferment and capitalisation rates (the key figures for calculating lease extension premiums) still need to be prescribed; until they are, significant valuation uncertainty remains
What does this mean for conveyancers today?
The practical implications of what is already in force are significant:
- Short leases on purchase: buyers can now instruct a lease extension claim immediately on completion, removing the previous two-year wait. For leases approaching 80 years, this changes the advice conversation considerably
- Leases under 80 years: marriage value still applies under current law. Buyers need to understand this clearly – the savings anticipated when marriage value is eventually removed are not yet available
- Valuation uncertainty: with prescribed rates not yet set, premium quotes from different surveyors may vary significantly. Managing client expectations around cost is important
- Timing decisions: some leaseholders may be weighing whether to extend now or wait for the more favourable terms to arrive. There is no single right answer – it depends on lease length, ground rent, and individual circumstances
The Leasehold and Freehold Reform Act is a landmark piece of legislation – but it is being implemented in stages, and most of its headline changes are not yet in force. The gap between the Act becoming law and its provisions taking effect is one of the most common sources of confusion for clients and practitioners alike.
For conveyancers, staying current with each commencement order as it arrives is essential – because the advice you give today may look quite different from the advice that will be appropriate in twelve months’ time.
