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Leasehold Reform

Leasehold is changing. The leaseholders who prepare early will be in the strongest position.

The current system gives the people paying the costs too little control, clarity, and protection. Reform is now moving forward: some changes are already law, others are progressing, and more are expected. But stronger rights do not automatically deliver better outcomes. The leaseholders who benefit most will be the ones who understand what is changing, get organised early, and act before the next issue forces a decision.

Why Reform Matters

This is not just a bad system. It is a system that now has to change.

Leaseholders across different buildings keep describing the same problems: rising charges, weak transparency, poor accountability, difficult complaints, and too little control over the management they fund. That is why reform has gathered momentum. The issue is not a run of isolated disputes. It is a structure that keeps reproducing the same imbalance between the people making the decisions and the people paying for them.

What matters for leaseholders is not just that reform is happening. It is what reform may change for your flat, your costs, your options and timeframes. Better rights can improve the landscape. They do not remove the need to be organised and act.

Latest Reform Progress

What is already law - and what is being proposed next?

This matters because leaseholders are no longer looking at a purely theoretical reform agenda. Some changes are already on the statute book. Others are directionally clear but still depend on timing, technical detail, or further legislation.

Key reforms already enacted:

In force

Ground rent on most new long residential leases has already been reduced to a peppercorn

The Leasehold Reform (Ground Rent) Act 2022 means the worst ground-rent abuses are now concentrated in existing leases, not new ones.

Why it matters: Reform is no longer theoretical. The legal baseline has already started to shift in favour of leaseholders.

In force

The sale of most new leasehold houses is banned

The 2024 Act bans most new leasehold houses, with limited exceptions.

Why it matters: It reduces one of the most controversial forms of leasehold on new-build homes.

Passed, pending implementation

Lease extensions are moving to 990 years and the two-year ownership rule has been removed

The Leasehold and Freehold Reform Act 2024 makes lease extension and enfranchisement rights stronger and easier to access in principle, even though different parts are being phased in over time.

Why it matters: Stronger long-term security, better value protection, and easier access to lease extension or freehold rights sooner.

Passed, pending implementation

More mixed-use buildings should qualify for Right to Manage, with lower cost barriers

The 2024 Act widens eligibility for Right to Manage and is meant to reduce some of the historic cost barriers that stopped leaseholders from acting.

Why it matters: More blocks should have a realistic route to control management without being priced out of the process.

Passed, pending implementation

Stronger service-charge transparency

LAFRA introduces prescribed formats, stronger information rights, tighter legal-cost recovery rules, and an effective ban on insurance commissions are all designed to make charges easier to understand and challenge.

Why it matters: Opaque costs should become easier to question, compare, and challenge.

Three further reforms now proposed (expected 2026-2027):

Proposed next

Ground-rent cap for existing leases

The government has announced plans to cap ground rents on existing long residential leases at £250 per year, with that cap reducing over time to a peppercorn after 40 years.

Why it matters: Lower ongoing cost, fewer saleability problems, and a gradual end to monetary ground rents for many existing leaseholders.

Proposed next

A ban on leasehold for new flats and a move toward commonhold

The direction is to replace new leasehold flats with a reformed commonhold model, where flat owners collectively own and control their building.

Why it matters: A better long-term ownership model with control and cost accountability in the hands of residents from the outset.

Proposed next

An easier route to commonhold for existing blocks

Further reforms are expected to pick up more Law Commission recommendations on enfranchisement, Right to Manage, and the path from leasehold to commonhold.

Why it matters: A more practical route away from leasehold over time, even if change remains gradual.

Reforms are moving in the right direction, but they will not all arrive at once and will only count when they are actually put to use in real buildings.

What This Means For Leaseholders

Why these reforms matter for leaseholders.

Reform matters because it is intended to improve the parts of leasehold that affect people most directly: value, control, cost visibility, and the long-term future of their flats.

Leaseholders reviewing reform options together around a table

Reform has intended impacts, not automatic outcomes. It does not organise your neighbours, gather your evidence, or decide whether waiting is wise for your lease. You still need a plan.

Better financial security and saleability

Longer lease extensions, lower ground-rent exposure, and clearer enfranchisement rights are all intended to improve mortgageability, resale prospects, and long-term value.

More control over management and charges

Expanded RTM eligibility and stronger service-charge rules are meant to shift power back toward leaseholders and make poor management easier to challenge or replace.

Stronger transparency over costs

Prescribed formats, information rights, and tougher limits on hidden commissions make service charges easier to understand and harder to manipulate.

A route beyond leasehold itself

The longer-term direction is not just improving leasehold, but creating a better ownership model through commonhold and stronger resident control.

What Reform Will Not Do

Do not rely on the headlines alone.

One of the biggest risks for leaseholders now is misunderstanding what reform does and does not solve. Better law does help but it doesn't take the next step for you. Do not fall for the common myths.

Reform will wipe out my ground rent and reduce service charges immediately.

Reforms are designed to cap and phase down payments, not necessarily write ground rents to zero on day one and reduce costs. Leaseholders will still need to review evidence, use the rights available, and make decisions at the right time.

I will get the freehold for free.

Reform should make enfranchisement easier and cheaper, but not free. Premiums and costs are currently being heavily challenged and may likely still remain.

Reform will automatically fix our bad managing agent.

You may get better rights and better routes to challenge or replace them, but someone still has to get block buy-in and take the optimal route.

Building-safety costs will vanish.

Building-safety liabilities sit largely under separate legislation and schemes. Leasehold reform is not a blanket bailout.

Reform will make leasehold risk-free.

It can reduce some risks and rebalance some power, but it does not remove the need for evidence, timing, and practical action.

Newspaper, coffee and notes on a table beside a laptop

Do not wait passively for reform to fix everything. The strongest position usually belongs to leaseholders who understand their documents, their timing, and their options, and take the next step.

Leaseholder planning next steps at a laptop with a city view

Getting ready

How should current leaseholders start preparing now?

This is where reform becomes practical. The best time to prepare is before the next bill, offer, delay, or dispute lands.

Know your lease

Get clear on the details of your lease

Start with getting to understand your lease. Reform builds on your current position. It does not replace the need to fully grasp it.

How UNLEASE helps

We provide a lease health-check that surfaces red flags, key dates, and which enacted or proposed reforms matter most to your flat.

Assess the timing

Understand timing implications

For some leaseholders, waiting may make sense. For others, especially where service charges are out of control, with lease issues or a sale or remortgage is approaching, delay will cost significantly more than it saves.

How UNLEASE helps

We model practical scenarios such as extend now versus later, likely benefit from proposed changes, and statutory versus informal routes.

Organise early

Organise your block prior to a crisis

Many of the strongest rights are collective. Right to Manage, enfranchisement, and future commonhold conversion all depend on neighbours being able to coordinate. A block with communication and basic momentum is in a much stronger position than one starting from zero under pressure.

How UNLEASE helps

We enable leaseholders to find each other, create a residents group, run simple polls, and build enough alignment to act when the timing is right for the benefit of the block.

Build evidence

Build your evidence base now

Historic service-charge demands, year-end accounts, Section 20 notices, repeated repairs failures, unexplained spikes, repeated repairs failures, and safety issues all become more useful when they are organised and analysed properly. Stronger rights work best when the evidence is already there.

How UNLEASE helps

We turn scattered documents and recurring issues into a usable evidence base with timelines, categories, and clearer patterns.

Check offers carefully

Be cautious with informal offers

As reforms progress, some freeholders may offer informal lease extensions or variations that look attractive in the short term but reduce the value of future rights.

A short-term solution is not always optimal in the long-term.

How UNLEASE helps

We help leaseholders assess when an offer looks harmless, risky, or worth getting independent specialist advice on before signing anything.

Prepare for control

Prepare for resident-led management

Even before formal conversion is realistic, blocks can start acting more like resident-led buildings: delegated responsibilities, better records, clearer communication, shared priorities, and stronger neighbour coordination.

That improves today's position and makes tomorrow's options more achievable.

How UNLEASE helps

We support blocks with commonhold and resident-control readiness instead of waiting until change becomes urgent.

What This Means For Leaseholders

Reform is another reason to act now - not another reason to wait.

The real advantage does not come from following the reform story at a distance. It comes from being organised enough to benefit when stronger rights arrive or when your building reaches a decision point.

We are not just explaining what is changing. We are helping leaseholders use change to their benefit, reduce the risk of being caught out, and move from reactive decisions to better-timed ones.

YOUR NEXT STEP

Reform may improve the system in the future. See what you should be doing now.

Understand your current leasehold position, the problems worth addressing and the rights and options available to you today.