If you own a flat in London, or you’re thinking about buying one, there’s a good chance you’ve seen the phrase “leasehold reform” cropping up a lot lately. And with good reason. The rules that govern how leasehold property works in England are changing in ways that haven’t been seen for decades. But with so many headlines, consultations, and draft bills flying around, it can be genuinely hard to know what’s actually happened, what’s coming, and what it means for you.
Here’s a straightforward guide from us.
What’s already changed
The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, and while most of its provisions are being rolled out gradually, some meaningful changes are already in force.
The most practically useful one: since February 2025, leaseholders no longer have to wait two years after purchasing their property before they can extend their lease or apply to buy the freehold. That wait used to catch people out, especially buyers who didn’t realise the clock was ticking from the moment they exchanged. Now, you can start the process as soon as your Land Registry application is processed.
Separately, since March 2025, leaseholders in mixed-use buildings (where shops or commercial space make up as much as 50% of the building’s total floor area) can now apply for the Right to Manage, giving residents more collective control over how their building is run. Previously, that threshold sat at 25%, which excluded a large number of central London buildings.
Also gone: the requirement for leaseholders to cover the freeholder’s legal costs when making a Right to Manage claim, unless a tribunal specifically orders otherwise. That was a real deterrent before, and removing it levels the playing field considerably.
What’s still in progress
The government’s direction of travel is clear away from leasehold and towards commonhold. In January 2026, a draft Commonhold and Leasehold Reform Bill was published. The long-term intention is to ban new leasehold flats and make commonhold where residents collectively own and manage their building the default for new developments.
For existing leaseholders, a major consultation closed in September 2025 covering service charge transparency and managing agent regulation, including proposals to introduce mandatory professional qualifications for agents. We expect secondary legislation to follow, though timelines remain uncertain.
Valuation reforms — which would make lease extensions cheaper are still working their way through the system and have faced legal challenges from freeholders. The High Court dismissed those challenges in October 2025, clearing the path forward, though full implementation is likely still some way off.
What this means in practice
If your lease is below 80 years, now is a very sensible time to think about extending. The longer you leave it, the more expensive the process tends to become. And with the two-year rule gone, there’s no reason to delay if you’re a recent purchaser.
For investors, the shift towards greater leaseholder rights and the future possibility of commonhold is worth factoring into how you think about your portfolio. Buildings with good management, transparent service charges, and well-maintained common areas will continue to hold their value well.
If you’d like to understand how these changes affect your specific building or portfolio, our team is always happy to talk it through.