Leasehold reforms explained
Buying the freehold
Whether you own a leasehold house or flat, the reforms in the Leasehold and Freehold Reform Act 2024 aim to make buying the freehold cheaper, easier and free from future ground rent costs. Owning the freehold gives you more control over things like maintenance and service charges and can make your home easier to sell or remortgage.
| Change | Old rule | New rule |
|---|---|---|
| 2-year ownership rule | You must have owned the property for 2 years before you can buy the freehold (only applies to leasehold houses) | From 31 January 2025, you can buy the freehold as soon as you become the owner (of a house) |
| Area of change | Current rule | Proposed change |
|---|---|---|
| Marriage value when buying the freehold | An extra part of the cost to buy the freehold if your lease has 80 years or less remaining | You will no longer have to pay marriage value |
| Flats in mixed-use buildings | You can buy the freehold if 75% of the building's floor space, excluding common areas, is residential (so no more than 25% commercial such as shops or offices) | You will be able to buy the freehold if 50% of the building's floor space, excluding common areas, is residential (so no more than 50% commercial such as shops or offices) |
| Valuation rules when buying the freehold | Fees for professional advice and support with negotiations are often complex and expensive and can result in legal disputes | Standardise how the cost of buying the freehold is calculated to make it clearer and easier to work out |
| Ground rent | Sometimes you still have to pay ground rent even after buying the freehold | You will no longer have to pay after buying out the ground rent (with some exceptions) |
| Landlord’s legal costs when buying the freehold | Usually, you have to pay | You will no longer have to pay (with some exceptions) |
The government has not finalised exactly how all the proposed changes will work in practice (for example, for valuation calculations or legal costs).
Wait for the reforms to be implemented or act now?
Whether to buy your freehold now or wait will depend on your personal situation. If you want to benefit from the new rules and potentially save costs, it might be worth waiting until the reforms are implemented.
To get advice on what to do now, speak to a professional who specialises in the purchase of freeholds for leaseholders
Related content
- Last updated:
- 28 January 2026
- Next review:
- 27 July 2026