Leasehold reform is moving forward, but several headline changes are not yet available. Here is what flat owners and prospective buyers in England and Wales need to know.
For flat owners, the lease can affect annual costs, repairs, alterations and how easily a property can be sold or remortgaged. The Leasehold and Freehold Reform Act 2024 introduced major changes, while a further Commonhold and Leasehold Reform Bill is planned.
Implementation is taking place in stages. The House of Commons Library explains that most provisions in the 2024 Act are not yet in force and many require secondary legislation. Buyers and owners must distinguish between current rights and future reforms.
What has already changed?
Since 31 January 2025, eligible leaseholders have no longer needed to own a property for two years before starting a statutory lease extension or freehold-purchase claim. A qualifying buyer can therefore begin the formal process after completing their purchase.
Right to Manage rules were expanded on 3 March 2025. More leaseholders in mixed-use buildings can now qualify to take over management, while claimants generally no longer have to cover the freeholder’s legal costs.
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Are 990-year lease extensions available?
Not yet.
The Act provides for a standard statutory lease extension of 990 years, with the ground rent reduced to a peppercorn – effectively zero. It also removes marriage value from the calculation used to price a statutory extension or freehold purchase. Marriage value can currently increase the cost where a lease has 80 years or fewer remaining.
Before the new system can begin, the government must set the valuation rates and correct technical issues in the legislation. A consultation published on 15 July 2026 is considering the deferment and capitalisation rates that will apply.
Until the relevant provisions are commenced, lease extensions continue under the existing rules. Owners should not delay automatically in the hope that extending will become cheaper. Anyone approaching the important 80-year point should obtain advice from a specialist solicitor and valuer before deciding what to do.
What is changing with service charges?
Service charges can cover maintenance, insurance, management, cleaning and major repairs, making them one of the least predictable costs of owning a flat.
The government says stronger protections will come into force as soon as possible from 2027. Landlords will have to provide an annual report on the building’s condition and planned major works, alongside a standardised service-charge demand.
Leaseholders will gain stronger rights to request maintenance invoices and fire-safety documents. New legal-cost rules should also make it easier to challenge unreasonable charges.
The reforms should improve transparency, but older buildings, higher insurance premiums and major works can still produce substantial bills.
What is happening to ground rent?
Most new residential leases granted since the Leasehold Reform (Ground Rent) Act 2022 took effect already have a peppercorn ground rent. Older leases can still contain annual charges that increase over time.
The government is legislating to cap most existing residential ground rents at £250 a year, reducing them to a peppercorn after 40 years. The measure is intended to form part of the Commonhold and Leasehold Reform Bill and remains subject to parliamentary approval. The House of Commons Library says the cap is currently likely to take effect in late 2028.
Buyers should therefore assess a flat using the ground-rent clause currently written into its lease, rather than assuming a future cap will resolve an escalating or mortgage-unfriendly term.
Will commonhold replace leasehold?
Commonhold lets a flat owner own their home outright while sharing responsibility for the building through a commonhold association. There is no diminishing lease term or external freeholder collecting ground rent.
The government plans to create a new commonhold framework and ban leasehold for most new flats, making commonhold the default tenure. These proposals could reshape flat ownership, but existing leasehold buildings will remain a major part of the market for years.
What should buyers check now?
Before buying a leasehold flat, ask your solicitor to examine the remaining lease term, ground rent and review clause, recent service-charge accounts, planned major works, reserve-fund balance, building insurance and any historic fire-safety concerns.
The lease should also be checked for restrictions on pets, subletting, alterations or home working, and whether previous alterations received consent.
As our guide to the checks to make before offering on a property explains, these questions should be raised before a buyer becomes financially committed.
The government-funded Leasehold Advisory Service recommends checking whether major works are planned and enough money has been set aside. A low service charge is not always a benefit if maintenance is being postponed.
The bottom line
Leasehold reform is progressing, but the position in 2026 remains transitional. The two-year ownership rule has gone and access to Right to Manage has widened. Clearer service-charge information is due to begin from 2027, while 990-year extensions, the removal of marriage value, the ground-rent cap and the wider shift to commonhold are not yet fully available.
Buyers should judge a flat using the lease and financial information attached to it today. Existing owners may gain valuable rights as reforms take effect, but future changes should not replace timely professional advice.
This article reflects the position on 21 July 2026 and provides general information only. Seek advice from a qualified solicitor and, where appropriate, a specialist valuer.
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