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Leasehold reforms explained

Lease extensions

The reforms in the Leasehold and Freehold Reform Act 2024 aim to make it easier and cheaper to extend a lease, especially if you have a short lease (80 years or less remaining) or you pay a high ground rent. Extending your lease can protect the value of your property, make it easier to sell or remortgage and reduce costs over time.

Reforms already implemented
Change	Old rule	New rule
2-year ownership rule	You must have owned the property for 2 years before you can extend the lease	From 31 January 2025, you can extend as soon as you become the owner

Reforms not yet implemented
Area of change	Current rule	Proposed change
Length of a statutory lease extension	Flats: 90 years (as many times as you like). Houses: 50 years (once only and you then pay a modern ground rent).	990 years for flats and houses
Ground rent for lease extensions	Flats: zero for the remaining term and extension. Houses: ground rent stays the same for the remaining term and becomes a modern ground rent for the extension.	Zero for flats and houses for the remaining term and extension
Marriage value for lease extensions	An extra part of the cost to extend your lease if it has 80 years or less remaining	You will no longer have to pay marriage value
Calculating the cost for lease extensions	Fees for professional advice and support with negotiations are often complex and expensive and can result in legal disputes	Standardise how the cost of extending a lease is calculated to make it clearer and easier to work out
Landlord’s legal costs for lease extensions	Usually, you have to pay these costs	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, full details about the valuation calculations or legal costs).

Wait for the reforms to be implemented or act now?

Whether to extend your lease now or wait will depend on your personal situation and length of your lease. For example, if it’s 80 years or less you might want to wait for the reforms to be implemented, as they may make it cheaper to extend.

Find out more, including if you should wait and the factors that might make the extension cheaper or more expensive for you

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Last updated:: 28 January 2026
Next review:: 27 July 2026