Leasehold Reform 2026: What’s Changed and What’s Still Coming (A Leaseholder’s Tracker)
Last reviewed: July 2026. Applies to England & Wales - Scotland has a separate system of property law and this form of residential leasehold does not work the same way there. We keep this tracker current as commencement dates are confirmed.
In Brief
Leasehold reform is happening - but in stages, and slower than the headlines suggest. As of July 2026, one major change is already law: you can extend your lease or buy your freehold from day one of ownership, because the old two-year wait ended on 31 January 2025. The reforms most leaseholders are waiting for - scrapping marriage value, cheaper valuations, a 990-year extension term - are on the statute book but not yet switched on, held up by a freeholder legal challenge. A separate draft Bill (January 2026) would go further: banning most new leasehold flats and capping ground rents. This tracker sets out, with dates, exactly what has changed, what is legislated but pending, and what is still only proposed - so you can decide whether to act now or wait.
Leasehold reform 2026 at a glance
There are really two separate things moving through the system, and confusing them is where most of the online misinformation comes from:
- The Leasehold and Freehold Reform Act 2024 (LFRA) - already passed, being switched on in stages.
- The draft Commonhold and Leasehold Reform Bill (January 2026) - a separate, later proposal that is not yet a law at all.
Here's where each headline reform actually stands today:
| Reform | Which law | Status (July 2026) | What it means for you |
|---|---|---|---|
| Day-one right to extend a lease / buy the freehold (2-year rule abolished) | LFRA 2024 | In force (31 Jan 2025) | Extend or enfranchise immediately on buying - no wait |
| Abolition of marriage value + new valuation method | LFRA 2024 | Legislated, not yet in force | Marriage value still applies to leases under 80 years today |
| Standard 990-year extension term at a peppercorn ground rent | LFRA 2024 | Legislated, not yet in force | Statutory flat extensions are still +90 years for now |
| Each side bears its own costs | LFRA 2024 | Legislated, not yet in force | You still pay the freeholder's reasonable costs for now |
| Ban on new leasehold flats (commonhold by default) | Draft Bill 2026 | Proposal only | Existing leases unaffected; not expected soon |
| £250 ground-rent cap for existing leases | Draft Bill 2026 | Proposal only | Not expected to bite until 2028 at the earliest |
The rest of this article walks through each row - what's live, what's stuck, and why.
What's already in force
The two-year ownership rule is gone. This is the single biggest change that has actually taken effect. Section 27 of the LFRA 2024 was commenced on 31 January 2025, abolishing the old rule that made you wait two years after buying before you could extend your lease or buy your freehold. You now have that right from day one of ownership.
That matters most if you're buying a flat with a short lease. In practice, the seller can serve the statutory notice and assign the benefit of it to you on completion, so you can carry the extension straight through rather than starting from scratch. Build it into your offer - our guide on what to do if a freeholder refuses to extend a lease explains how the statutory route works step by step.
A quieter set of changes to the Right to Manage regime also took effect on 3 March 2025: the non-residential floorspace limit that blocked some mixed-use blocks was relaxed, and in most cases leaseholders bringing a claim no longer have to pay the freeholder's costs. If your block is part-commercial, it may now qualify where it didn't before.
Legislated but not yet in force
This is the part that trips people up. The LFRA 2024 received Royal Assent back in May 2024, so you'll see plenty of articles saying these reforms are "now law." They are on the statute book - but the provisions below have not been commenced, which means you cannot use them yet:
- Abolition of marriage value. The Act promises to remove marriage value from the extension/enfranchisement calculation - the single change that would make extending a short lease dramatically cheaper. It is not active. Marriage value still applies to leases under 80 years today.
- A standard 990-year extension term at a peppercorn (effectively zero) ground rent, up from the current +90 years for flats.
- Each side bearing its own costs, removing the rule that makes you cover the freeholder's reasonable valuation and legal costs on top of your own.
The practical takeaway is blunt: do not plan around figures that aren't in force yet. If your lease is drifting toward 80 years, today's law - including today's marriage value - is what applies to you. The 80-year line remains very real, and because the valuation date is fixed by the date you serve your notice, serving before you drop under 80 can still save you thousands. We cover that mechanism in detail in the freeholder refusal guide.
Why is it taking so long?
Two things are holding up the valuation reforms.
First, they need secondary legislation. Abolishing marriage value isn't a flip of a switch - the Government has to set the valuation rates that replace it, and it can only do that after a consultation. Ministers have said they expect to consult on those rates during 2026; as of July 2026 that consultation is still awaited.
Second, there's a live legal challenge. A group of freeholders challenged parts of the Act, arguing the changes to how they're compensated are unlawful. The High Court dismissed that challenge on 24 October 2025 - but the Court of Appeal has since granted the freeholders permission to appeal, so the litigation is not fully over. That uncertainty is a big part of why commencement keeps slipping.
Put those together and the honest picture is: commencement of the valuation reforms is realistically late 2026 at the earliest, and some provisions may slip to 2027 or 2028. Anyone giving you a firm "it'll be cheaper by [date]" is guessing. We monitor commencement closely and will update this tracker as dates are confirmed.
Still coming: the Commonhold and Leasehold Reform Bill
Separately - and further out - the Government published a draft Commonhold and Leasehold Reform Bill on 27 January 2026. This is the more radical package, aimed at ending leasehold for new-build flats altogether. Because it's a draft Bill, it is not law, has not completed its passage through Parliament, and its detail can still change. Here's what it currently proposes, and the Government's own indicative timing:
| Proposal | What it would do | Indicative timing |
|---|---|---|
| Ban most new leasehold flats | Make commonhold the default for new flats; ban new long leases of flats (with limited exceptions). Existing leasehold flats are not caught | "Highly unlikely" before the next general election |
| £250 ground-rent cap (existing leases) | Cap ground rent on existing leases at £250/year, falling to a peppercorn after 40 years | Government estimates not until 2028 at the earliest |
| Reinvigorate commonhold | A new, workable commonhold model so blocks can be owned collectively without a freeholder | New model available before the end of this Parliament |
| End residential forfeiture | Remove the freeholder's power to forfeit a lease over small debts | Shortly after Royal Assent |
The key point for existing leaseholders: even if this Bill becomes law, it does not abolish your existing lease. You would still own a leasehold flat; you'd simply gain a ground-rent cap and (in time) an easier route to commonhold. The Housing Minister confirmed in April 2026 an intention to set commencement dates for all parts of both the LFRA and this Bill by the end of this Parliament - which, on the current timetable, points to a rolling programme through roughly 2028–2029 rather than anything imminent.
Should I act now or wait?
The reforms create a natural temptation to sit tight and hope everything gets cheaper. For most leaseholders, that's the wrong instinct. Here's a framework:
| Your situation | Do the pending reforms help you? | Sensible move now |
|---|---|---|
| Lease near or under 80 years | Only if marriage-value abolition commences before you'd extend - which isn't guaranteed | Act now. Serving your notice fixes the valuation date; waiting risks crossing 80 years and adding marriage value under today's law |
| Buying a flat with a short lease | The day-one right already helps you | Negotiate for the seller to serve notice and assign it to you; build it into the offer |
| Comfortable lease (90+ years) | Marriage value doesn't affect you yet anyway | No urgency, but keep an eye on the term; the cheapest lease to extend is always the longest one you still have |
| Tempted to wait for cheaper valuations | Maybe one day - but not in force, and the timetable keeps moving | Weigh today's real numbers, not a promised timetable. Your lease shortens while you wait |
| Struggling with a high ground rent | The £250 cap is years away (2028+) and only proposed | Ask about options that exist now - an informal deal, or a statutory extension that reduces ground rent to a peppercorn |
The recurring theme: reform is coming, but not on a timetable you can safely plan around. Decide based on the law as it stands today, and treat any future saving as a bonus rather than a certainty. If your lease is short or falling toward 80 years, waiting almost always costs more than it saves.
Where Bird & Co can help
Leasehold reform is genuinely confusing right now - half the internet says things are "law" when they aren't yet in force. If you're weighing up a lease extension, buying a flat with a short lease, or just trying to work out whether to act or wait, it helps to talk to someone who tracks the commencement dates for a living.
At Bird & Co, our property team handles statutory and informal lease extensions and freehold purchases for clients across England & Wales, with fixed-fee quotes so you know your legal costs up front, and direct contact with the solicitor handling your matter - no call-centre runaround. We're a CQS-accredited and Lexcel-accredited, SRA-regulated firm, rated 4.9 out of 5 on Trustpilot from over 1,100 reviews.
Get a fixed-fee conveyancing quote →
Or call our Newark office on 01636 650880, or email enquiries@birdandco.co.uk, to talk it through. You can also read more about our conveyancing service.
Frequently Asked Questions
My lease is at about 82 years - should I wait for marriage value to be abolished before I extend?
No - that's the trap. Marriage-value abolition is legislated but not yet in force, and the timetable keeps slipping amid the freeholder appeal. Meanwhile your lease keeps shortening. If it drops below 80 years before the reform commences, marriage value applies under today's law and can add thousands. Serving your Section 42 notice now fixes the valuation date at "above 80 years." Get a valuation quickly rather than gamble on a date no one can promise.
I'm buying a flat with a short lease in 2026 - can I extend straight away?
Yes. Since the two-year ownership rule was abolished on 31 January 2025, you no longer have to wait. In most cases the seller serves the statutory notice and assigns the benefit of it to you on completion, so you can carry the extension straight through. Raise it during negotiations so it's built into the deal.
When will ground rent actually be abolished for my existing lease?
There's no confirmed date. The £250-a-year cap (falling to a peppercorn after 40 years) sits in the draft Commonhold and Leasehold Reform Bill published in January 2026 - it isn't law yet, and the Government's own estimate is that it won't take effect until 2028 at the earliest. Note that ground rents on most new leases were already reduced to a peppercorn by the earlier Leasehold Reform (Ground Rent) Act 2022; the cap is aimed at existing leases.
Are leaseholds being abolished altogether?
Not the ones that already exist. The draft 2026 Bill would ban most new leasehold flats and make commonhold the default going forward - but existing leasehold flats, and any sale, extension or variation of them, are not caught. Even that ban is described by the Government as "highly unlikely" to come in before the next general election. If you own a leasehold flat today, you'll still own it as a lease for the foreseeable future.
I keep reading the reforms are "now law" - so why can't I use them?
Because "passed" and "in force" are different things. The Leasehold and Freehold Reform Act 2024 received Royal Assent, but most of its cost-saving provisions still await secondary legislation and a commencement date. Until a provision is formally commenced, it has no practical effect - which is why the day-one right (commenced January 2025) works today, but marriage-value abolition does not.
Will waiting for the reforms make my lease extension cheaper?
Possibly one day - but it's an unhedged bet. The reform that would cut costs most (abolishing marriage value) isn't in force, its start date keeps moving, and it's subject to a live Court of Appeal challenge. While you wait, your lease shortens, and dropping under 80 years could add marriage value now and wipe out any future saving. Decide on the actual numbers for your own lease rather than a promised timetable.
Does any of this apply in Scotland?
No. Scotland has a separate legal system for property and doesn't use this form of residential leasehold, so the rights and reforms described here are an England & Wales matter.
Related Articles
- Can a Freeholder Refuse to Extend a Lease?
- Leasehold vs Freehold - Things to Look Out For
- What Are Disbursements in Conveyancing?
- How Long Does It Take to Move House in the UK?
- Our Conveyancing Solicitors
This article is general information about leasehold law in England and Wales and is not legal advice. Leasehold reform is moving quickly and commencement dates can change - always speak to a qualified conveyancing solicitor about your own circumstances before acting.