Laws & Regulations
Is the Leasehold Reform Bill law yet?
Partly. The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024 and most of its provisions are now in force, including a 990-year standard extension term, removal of the two-year ownership requirement before extending, and a ban on new leasehold houses in England. The further Leasehold and Commonhold Reform Bill, introduced in 2025, is still progressing through Parliament and is expected to receive Royal Assent during 2026.
The pending Bill goes further: it caps existing ground rents (consultation ran on options between £250 a year and a peppercorn), abolishes forfeiture, mandates commonhold for new flats, and reforms service charge transparency. Until the second Bill commences, ground rents on existing leases remain governed by the lease terms — the cap is not yet live. See the GOV.UK leasehold reform programme.
What this means in practice
A leaseholder in a 2015-built flat with a £350-per-year ground rent doubling every 10 years can already use the 2024 Act to extend their lease by 990 years and cap the new ground rent at a peppercorn. They cannot yet challenge the £350 on their existing lease — that requires the second Bill to commence. New-build flats sold in 2026 are unaffected by the cap until the second Bill is enacted, which is why several developers are already pricing leases at peppercorn rents in anticipation.
Related questions
Can I extend my lease right now?
Yes. The 2024 Act removed the two-year qualifying period in January 2025 and increased the standard extension to 990 years at a peppercorn ground rent. The "marriage value" component of the premium for leases under 80 years was also abolished, which can substantially reduce the cost of extending a short lease. Use a RICS-qualified valuer to obtain a Section 42 valuation and serve notice on the freeholder.
When does commonhold replace leasehold?
The pending Bill is expected to mandate commonhold for new-build flats from a commencement date in 2026 or 2027 — the exact date will be in regulations once Royal Assent is granted. Existing leasehold blocks will not auto-convert; conversion to commonhold remains a voluntary route requiring 50% leaseholder support (down from 100% under the 2002 Act). The GOV.UK programme page tracks commencement dates.
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