Leasehold reform in practice: What's actually changed for buyers so far
The volume of coverage that leasehold reform has received over the past two years is considerably larger than the volume of change that has actually taken effect. The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, but most of its most consequential provisions have not been brought into force. The draft Commonhold and Leasehold Reform Bill, published in January 2026 and confirmed in the May 2026 King's Speech, proposes further reforms that are not yet law. For buyers considering a leasehold property in October 2026, understanding precisely what has changed and what has not is more useful than the general impression that reform is underway.
What is confirmed in force: The two-year ownership rule
The most immediately practical change for buyers of leasehold property is the removal of the two-year ownership rule, which took effect in early 2025. Before this change, a leaseholder had to have owned the property for at least two years before they could exercise their statutory right to extend their lease or buy a share of the freehold. That restriction has been removed. A buyer who completes on a leasehold property today can serve notice to extend their lease the following week if they choose to.
This matters most for buyers of properties with shorter leases, typically those with less than 80 years remaining, where the cost of extending increases as the lease gets shorter. Previously, a buyer was exposed to that declining lease length during the two-year wait. Removing that barrier gives buyers the opportunity to initiate an extension from the point of purchase rather than accepting two years of additional depreciation in the lease term.
What is confirmed in force: Right to Manage
Also in force since March 2025 is an expansion to the Right to Manage qualification threshold. Previously, leaseholders in a building could only pursue Right to Manage if no more than 25% of the building's floor area was used for non-residential purposes. This threshold has been increased to 50%. Buildings with mixed commercial and residential use that previously fell outside the RTM qualification because of the 25% limit may now qualify.
Also changed is the cost liability in RTM claims. Freeholders can no longer require leaseholders to pay their legal costs in a standard Right to Manage claim. This removes a deterrent that previously made RTM financially unattractive for some leaseholder groups.
What is in the 2024 Act but not yet in force
Several provisions of the Leasehold and Freehold Reform Act 2024 that buyers and existing leaseholders have been waiting for are in statute but have not been brought into effect. This includes the abolition of marriage value, which currently adds a significant premium to the cost of extending a lease where fewer than 80 years remain. The Act abolishes it, but the relevant provisions have not been commenced.
Also not yet in force are new statutory valuation rates for calculating lease extension premiums, the extension of the standard lease extension term from 90 years to 990 years, and the reduction of ground rent to peppercorn on any extended lease.
The Housing Minister confirmed in Parliament in April 2026 that the 2024 Act contains specific flaws that require rectification through the new Commonhold and Leasehold Reform Bill before the remaining provisions can be implemented. This means the changes buyers have been most widely anticipating are waiting not only on secondary legislation but on a further Bill passing through Parliament.
The Commonhold and Leasehold Reform Bill, which proposes to ban most new leasehold flats, introduce a ground rent cap of £250 per year for existing leases, and make commonhold the default for new flat sales, was expected to be introduced to Parliament by the end of 2026. Passing it into law, and then implementing it, will take further time beyond introduction.
What this means for buyers now
If you are buying a leasehold property with fewer than 80 years remaining on the lease, you cannot yet benefit from the abolition of marriage value. The current cost calculation applies and marriage value remains a real cost. The ability to initiate a lease extension immediately on purchase is a genuine and in-force improvement, but the cost of that extension is calculated under the existing framework until the new valuation provisions commence.
If you are buying a leasehold flat in a mixed-use building, it is worth asking your solicitor whether the building now qualifies for Right to Manage under the expanded 50% threshold and whether collective enfranchisement remains a realistic option.
The direction of reform is clear. The timetable is not, and no buyer should make a decision on a leasehold property on the assumption that a specific reform will have reached a particular stage by a given date.
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