Leasehold reforms explained
Ground rent buyout
The reforms in the Leasehold and Freehold Reform Act 2024 aim to give you more control over your costs and make your home easier to sell by creating a new legal right to buy out your ground rent. This is important because some leases allow the ground rent to rise significantly over time, increasing costs and making properties harder to sell.
Most new leases granted from 30 June 2022 (or 1 April 2023 for new leasehold retirement flats and houses) have a "peppercorn ground rent" (effectively zero).
| Area of change | Proposed change |
|---|---|
| Ground rent buyout | If you have at least 150 years left on the lease you will be able to pay a one-off amount to eliminate your ground rent completely. You will not have to extend your lease to do this |
The government has not finalised exactly how ground rent buyouts will work (and if there are any exceptions).
Wait for the reforms to be implemented or act now?
What is best for you will depend on your personal circumstances. For example, if you’re considering extending your lease to reduce a high ground rent, it could be better to wait for the reforms to be implemented if you do not need to extend urgently.
To get advice on what to do, speak to a professional who specialises in leasehold.
Related content
Find out more about ground rent, including:
- when ground rent is payable
- if you can reduce the ground rent
- your rights when you get a demand for ground rent
- what to do if you're having difficulty paying ground rent
- Last updated:
- 28 January 2026
- Next review:
- 27 July 2026