What Are The Reforms?
Making It Cheaper to Extend Your Lease
Updated February 2026
The government is trying to push through major reforms to leasehold homeownership. The goal is to make it cheaper and easier for leaseholders to extend their lease or buy their freehold.
However, there's a catch. While the Act is now law, most of these changes aren't in effect yet. The key details, in particular those focused on what you will need to pay, have not been set.
Watch our explainer
Get the full breakdown in 20 minutes
The Timeline
Why Is It Taking So Long?
The Leasehold and Freehold Reform Act was passed on 24 May 2024, the last day of the previous Parliament. However, what was passed was a skeleton framework. The key details that determine how much leaseholders pay are still to be set. Any cost-saving measures won't arrive until late 2026-2027, and could be delayed until 2029-2030 - if they happen at all.
Act Passed
Framework legislation passed, but missing key financial details
2-Year Rule Removed
No longer need to own for 2 years before extending
Legal Challenges
Freeholders contesting the Act in court, appeals ongoing
Major Reforms
Potential marriage value changes, ground rent caps, cost savings (if they happen)
The Reality Check
What's Changed vs What's Coming
There are many positive changes for leaseholders in the pipeline, but these reforms will take time. Some changes are straightforward and have already come into effect. Others are more complex and will need further consultation and additional legislation.
Already in Effect
- No 2-year waiting period - you can extend immediately after purchase
- Building management rules - freeholders must disclose insurance commissions
- AST trap removed - high ground rents no longer risk repossession
Not Yet Law
- 990-year extensions - up from current 90 year extension
- Marriage value changes - with potential savings for sub-80 year leases
- Ground rent caps - for ongoing payments and when extending
- Freeholder cost caps - limiting what they can charge you
- Commonhold reform - draft bill has been published for review
Not Happening
- Abolish existing leasehold property - financially and legally impossible
- Converting leasehold to commonhold - still complex and expensive
The Complicated Truth
There Will Be Winners and Losers
To compensate freeholders for removing marriage value, other valuation factors may change. This means not everyone will benefit from the reforms.
May Save Money
- Leases under 80 years May save money due to removal of marriage value
- High or escalating ground rents If ground rent is above £250 or 0.1% property value
May Pay More
- Leases over 80 years May pay more to offset removal of marriage value
- Small fixed ground rents May pay more to offset onerous ground rents
- More valuable properties May pay more to offset cheaper properties
The Complete Guide
Read Our Full Reform Breakdown
Get the complete picture with our comprehensive 17-page guide covering everything you need to know about the leasehold reforms. See what's been announced, what's passed, and what's still uncertain. Plus the practical impact on marriage value, ground rent terms, and 990-year extensions.
