The Leasehold and Freehold Reform Act 2024

Amber Krishnan-Bird

The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024, though most of its provisions are not yet in force. The Act delivers the most significant overhaul of leasehold law in a generation, making lease extensions cheaper, the right to manage easier to claim, and service charges more transparent. A further wave of reform is proposed in the draft Commonhold and Leasehold Reform Bill, published on 27 January 2026, which would end leasehold for newly built flats and cap ground rents on existing leases.

What the 2024 Act changed

The Leasehold and Freehold Reform Act 2024 made the following changes to existing leasehold law:

1. Marriage value abolished. Leaseholders extending leases with fewer than 80 years remaining no longer have to pay marriage value as part of the premium. This is the single biggest saving for short-lease owners.
2. Standard valuation method and capped rates. The Act caps the treatment of ground rents in the premium calculation at 0.1% of the property value, and allows the government to prescribe the rates used to calculate extension and enfranchisement premiums. The prescribed rates have not yet been published in their final form, so the precise valuation effect remains to be confirmed.
3. 990-year lease extensions. The statutory lease extension has been increased from 90 years to 990 years.
4. Two-year ownership condition removed. Leaseholders can apply to extend immediately after purchase, rather than waiting two years.
5. Leasehold houses abolished. Subject to limited exceptions (such as retirement complexes), new houses can no longer be sold on a leasehold basis.
6. Legal costs changes. Under the previous regime, leaseholders typically paid the reasonable legal and valuation costs of the freeholder. The Act provides that leaseholders and freeholders generally meet their own costs, with limited exceptions for lower-value claims.
7. Ground rent buyout right. Leaseholders with at least 150 years left on their lease can buy out the ground rent without also extending the lease term.
8. Right to manage extended. The non-residential limit for right-to-manage qualifying buildings was increased from 25% to 50%, and freeholders can no longer recover their legal costs from leaseholders making an RTM claim.
9. Service charge transparency. Landlords and managing agents have to provide standardised service charge documents, and the right to challenge unreasonable service charges applies to variable service charges, not to fixed service charges.

What is in the draft Commonhold and Leasehold Reform Bill

The draft Commonhold and Leasehold Reform Bill, published on 27 January 2026, proposes a further set of changes, including:

• End of leasehold for new flats. Newly built flats would be sold as commonhold rather than leasehold, giving flat owners a freehold interest in their unit and joint ownership of the common parts through a commonhold association.
• Ground rent cap on existing leases. A cap at £250 per year, falling to a peppercorn after 40 years, with the cap expected to come into force in late 2028 subject to parliamentary timings.
• Forfeiture abolished for residential leases. Replaced with a more proportionate, court-supervised enforcement scheme.
• Estate rentcharge enforcement reformed. Sections 121 and 122 of the Law of Property Act 1925 would be repealed, with rentcharge owners required to give notice before commencing enforcement for arrears.

None of these proposals are in force yet. The draft Bill is undergoing pre-legislative scrutiny and consultation between 27 January and 24 April 2026, with the final Bill expected to be introduced in Parliament in autumn 2026.

For a fuller picture of the Bill, read our guide to the Commonhold and Leasehold Reform Bill.

Should I extend my lease now?

For most leaseholders, extending now under the 2024 Act framework is the safer choice. Marriage value has gone, lease extensions are cheaper, and the 990-year extension gives long-term security. If your lease has fewer than 80 years remaining, the case for extending now is strong because the lease is depreciating and the marriage value saving is available immediately.

For leaseholders with longer leases and a modest ground rent, waiting for the proposed £250 cap may make sense. The ground-rent buyout right under the 2024 Act is also available without extending the term, where the lease has at least 150 years remaining.

Whether to act under the 2024 Act or wait for the Bill depends on the years remaining, current ground rent, and your plans for the property. Specialist advice on your position is worth taking before either acting or waiting.

Speak to our leasehold team

If you have any queries on the 2024 Act or the proposed Commonhold and Leasehold Reform Bill, contact our leasehold dispute solicitors. Call us on 020 7485 8811 or fill in our online enquiry form.