Leasehold Reform in 2026: What Has Actually Changed?

Leasehold reform has been one of the most talked about areas of property law for several years. Owners of leasehold flats and houses have long raised concerns about rising ground rents, the cost of extending a lease, and service charges they cannot easily challenge. Parliament has responded with a series of changes, and the government has announced further plans.

The difficulty for homeowners is telling the difference between what has already changed, what has been passed but is still being brought in, and what is only proposed. This guide sets that out in plain English.

At Symes Bains Broomer we act for leaseholders buying, selling and extending leases in Scunthorpe, Goole and across North Lincolnshire and the East Riding, as well as for clients elsewhere in England and Wales. If you would like advice on your own lease, our conveyancing team is happy to help.

If you own a freehold, you own the building and the land it stands on with no time limit. If you own a leasehold, you own the right to live in the property for the number of years left on the lease. The freeholder (often called the landlord) owns the building, and the lease sets out the rules, such as ground rent, service charges and who repairs what.

Most flats in England and Wales are leasehold. Some houses, particularly on newer estates, have also been sold leasehold. As a lease gets shorter, the property can become harder to sell or mortgage, which is why lease length matters so much.

Leaseholders usually pay two kinds of charge to the landlord. Ground rent is a rent for the land, which may be fixed, may rise at set intervals or may be a peppercorn. Service charges cover the cost of insuring, repairing and managing the building and shared areas. Much of the reform debate is about making these charges fairer and easier to understand, and about making it cheaper and simpler to extend a lease or buy the freehold.

Lease length is especially important once a lease falls to around 80 years. Under the valuation rules that have applied for many years, extending a lease below that point has generally cost more, which is one reason leaseholders follow the reforms so closely.

Some reforms are well established:

• Peppercorn ground rents on new leases. Under the Leasehold Reform (Ground Rent) Act 2022, most new long residential leases granted from 30 June 2022 cannot charge a financial ground rent. The ground rent is a “peppercorn”, which in practice means nothing.
• Statutory lease extensions. Owners of leasehold flats have long had a legal right to extend their lease, and owners of leasehold houses can, in many cases, buy their freehold. The rule that you must have owned your flat for two years before using these rights has been removed under the 2024 Act.
• Building safety protections. The Building Safety Act 2022 gives qualifying leaseholders in many taller buildings protection from the cost of fixing historic safety defects.

When we act on a leasehold purchase, we check the lease, the ground rent, the service charges and any building safety information as part of our work. You can see our fixed fees on our leasehold purchase pricing page.

The Leasehold and Freehold Reform Act 2024 became law in May 2024. It is a large Act, and the government is bringing it into force in stages, with many parts depending on further regulations. On paper, the Act includes:

• Longer lease extensions: a standard extension of 990 years for both flats and houses, with ground rent reduced to a peppercorn.
• Changes to how extensions and freehold purchases are valued: including the removal of “marriage value”, which aims to make extending a short lease cheaper.
• Less risk of paying the landlord’s legal costs: in many statutory claims.
• A ban on most new leasehold houses, so that new houses are generally sold freehold.
• More transparency on service charges and insurance commissions, and stronger rights to challenge them.
• Greater rights for owners on freehold estates who pay estate management charges.

Because the start dates depend on regulations, we always check which parts apply on the day you instruct us. If you are thinking about extending your lease, it is worth speaking to us before you serve any notice, so you take the route that is best for you under the rules in force.

The government has also announced further plans that go beyond the 2024 Act. These include proposals to limit ground rents on existing leases and to make commonhold the normal way of owning flats in future. Commonhold allows each flat owner to own their flat outright, with the building run by a company the owners control, so there is no landlord and no lease that runs down.

These are proposals rather than law at the moment, and the detail may change as they go through Parliament. If you see headlines about ground rent caps or the end of leasehold, please do not assume your own lease has already changed. We are happy to look at your lease and tell you exactly where you stand today.

For most buyers and sellers, the practical points remain the same:

• Check the lease length early. Many lenders are cautious about shorter leases, so a seller with a short lease may want to start an extension before marketing, or arrange for the buyer to take over the claim.
• Look closely at the ground rent. A rent that doubles regularly can affect both value and mortgage options.
• Ask for the service charge accounts and any planned major works, so there are no surprises.
• Get the management pack early from the landlord or managing agent, as waiting for it is a common cause of delay.

If you are selling a leasehold home, gathering the lease, recent service charge accounts and details of the managing agent before you market the property can save weeks later on. We can also check whether your lease needs any consents or notices on a sale, so the buyer’s solicitor has everything they need.

Our article on key tips you need to know when buying a house covers more ways to keep your purchase on track.

It depends on your lease. Waiting may make sense for some leaseholders if valuation changes are expected to reduce the cost. However, the cost of extending generally rises as the lease gets shorter, and a short lease can make it harder to sell or remortgage in the meantime. If your lease is close to 80 years or below, or you plan to sell soon, please talk to us before deciding to wait.

Not automatically. The peppercorn rule under the 2022 Act applies mainly to new leases granted from 30 June 2022. If your lease is older, your ground rent continues to be payable under its terms unless and until the law changes or you extend your lease. Under a statutory lease extension, the ground rent is reduced to a peppercorn for the new lease.

In many cases, yes. Owners of leasehold houses have long had rights to buy the freehold, and the 2024 Act is designed to make this simpler and, in many cases, cheaper as its provisions come into force. Flat owners in a building can sometimes join together to buy the freehold of the building. We can check whether you qualify and explain the steps.

Our conveyancing team, headed by Partner Jenny Musgrave, helps leaseholders buy, sell and extend their leases, and keeps track of the reforms so you do not have to. We give you a clear fixed fee before we start. Speak to our local teams in Scunthorpe or Goole, or visit our conveyancing solicitors page. Call us for a free, no obligation chat about your lease.