The dream of finally owning the dirt beneath your feet in England and Wales has felt like a marathon with no finish line. For years, leaseholders have been promised an end to the "feudal" system, but as we navigate the start of 2026, the reality is a messy mix of major wins and frustrating delays. If you've been waiting for a sign to extend your lease or buy your freehold, the landscape has shifted again.
Honestly, it’s a lot to keep track of.
While the Leasehold and Freehold Reform Act 2024 is technically on the books, it hasn't fully "switched on" yet. We’re in this weird transitional phase where some rights are live, and others are stuck in the mud of secondary legislation and court battles.
The big wins: What you can actually do right now
Forget the two-year wait. That’s the headline. Historically, if you bought a flat with a short lease, you had to sit on your hands for 24 months before you could legally force the landlord to extend it. As of early 2025, that rule is dead. You can start the process on day one of ownership.
This is huge for the property market. It means you can buy a "fixer-upper" with a 75-year lease and start the extension process before you’ve even unpacked your boxes.
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Another massive shift is the Right to Manage. It’s much easier for people in mixed-use buildings now. Previously, if more than 25% of your building was commercial—think a shop or a gym on the ground floor—you were locked out of taking over the management. That threshold has been hiked to 50%. It opens the door for thousands of people in town centers to fire their expensive managing agents and run the building themselves.
The "Marriage Value" headache in 2026
If your lease is ticking down toward the 80-year mark, you’ve probably heard of "marriage value." It’s basically a kickback you have to pay the freeholder because the value of the property increases when the lease is extended. The 2024 Act promised to abolish this.
But here’s the catch.
Even though the law says marriage value should go, the specific "valuation tools" (the math the government uses to calculate the price) haven't been fully implemented across the board. There was a massive High Court challenge from freeholders in late 2025 who claimed this was a breach of their human rights to property. The government won that round, but the freeholders are currently appealing.
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If you have a lease with 82 years left, don't wait. Seriously. If it drops below 80 before the new valuation rules are fully active, you might still get hit with the old, expensive costs.
Why the 990-year lease matters
The standard extension used to be 90 years for flats. Now, the new statutory standard is 990 years. It basically turns your leasehold into a "virtual freehold." No more worrying about the clock ticking down for the next ten generations.
Ground rent: The £250 compromise?
We were all told ground rent would be capped at a "peppercorn" (zero).
The reality in 2026 is a bit more complicated. The Labour government is pushing the Leasehold and Commonhold Reform Bill, which aims to tackle those existing "doubling" ground rents that make flats unsellable. However, there’s been talk of a compromise cap—perhaps around £250 a year—rather than a total wipeout to avoid a total collapse of the pension funds that invest in these ground rents.
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It's sort of a "watch this space" situation. If you’re trapped with a ground rent that doubles every 10 years, the new Bill is your best hope, but don't expect it to happen overnight.
What most people get wrong about leasehold houses
You’ll hear people say "leasehold houses are banned." That’s mostly true for new builds. If you’re buying a brand-new house today, it should be freehold. But this doesn't automatically change the millions of existing leasehold houses already standing.
For those owners, the focus isn't on a ban, but on making it "cheaper and easier" to buy the freehold. The 2024 Act removes the requirement for leaseholders to pay the freeholder’s legal costs in most cases. That’s a saving of potentially £2,000 to £5,000 right there.
Actionable steps for leaseholders today
The "uk leasehold reform news" isn't just about waiting for the government; it's about knowing when to jump.
- Check your term: If your lease is between 80 and 85 years, get a valuation now. Waiting for the "cheaper" rules might cost you more if you slip under the 80-year mark while the lawyers are still arguing in court.
- Audit your service charges: New transparency rules mean freeholders must provide a standardized breakdown of costs. If your "insurance commission" looks dodgy, you have more rights than ever to challenge it in a tribunal.
- Look into Commonhold: The government is obsessed with "reinvigorating" commonhold. If you’re in a block of flats, start talking to your neighbors about collective enfranchisement. It's the only way to truly kill the leasehold cycle.
- Use the "Day One" Right: If you are currently house hunting, don't be scared of a shorter lease (85-90 years) like you used to be. You can negotiate a lower price and start the 990-year extension the moment you get the keys.
The leasehold system is dying, but it’s a slow, noisy death. Staying informed is the difference between saving five figures on your home or getting stuck with a bill that belongs in the 19th century.
Your next move: Locate your lease agreement and check the exact number of years remaining. If it's 83 years or fewer, contact a member of the Association of Leasehold Enfranchisement Practitioners (ALEP) to get a formal "wait or act" assessment based on the very latest 2026 valuation rates.