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.
| 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 |
| 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 | In most cases, you and your landlord will each pay for your own non-litigation legal and valuation costs. There will be limited exceptions where leaseholders may still have to contribute to the landlord’s or another party’s costs. |
The government is still consulting on the details of exactly how all the proposed changes will work in practice. The changes cannot be introduced until the Commonhold and Leasehold Reform Bill has been passed.
Consultations were published in July 2026 on the valuation rates and changes to who pays the costs of the enfranchisement process. The consultations close in September 2026, and the government will then review the responses and decide next steps.
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.
Related content
- Last updated:
- 10 August 2026
- Next review:
- 5 February 2027