A comprehensive breakdown of the Leasehold and Freehold Reform Act 2024 — what changed, what is being phased in, and how the new rules affect your lease extension premium.
The Leasehold and Freehold Reform Act 2024, which received Royal Assent in May 2024, is the most significant reform to leasehold law in England and Wales for over 30 years. For millions of leaseholders, the changes mean lower future extension costs and greater transparency — though the timing of most provisions depends on secondary legislation.
Flat owners previously received a 90-year statutory extension. The 2024 Act extends this to 990 years — effectively perpetual ownership. This removes the need to extend repeatedly throughout a lifetime of property ownership.
The Act proposes to abolish marriage value — the uplift payable when a lease falls below 80 years. This could save leaseholders tens of thousands of pounds. However, it requires secondary legislation and is not yet in force.
Not all provisions of the 2024 Act are immediately in force. Several require Statutory Instruments before they become law. Check lease-advice.org regularly for the current status of each provision before making financial decisions based on anticipated savings.
An independent review of the 5% deferment rate was commissioned. New prescribed rates are expected to reduce premiums when confirmed — but the current 5% rate still applies in all calculations today.
The requirement to have owned your property for two years before extending your lease has been removed. You can now trigger an extension from the date you complete your purchase — particularly valuable for buyers of properties with short leases.
Freeholders must now provide clearer, itemised service charge breakdowns. Leaseholders have enhanced rights to challenge unreasonable charges at the First-tier Tribunal.
The Right to Manage — allowing leaseholders to take over building management without buying the freehold — is now available to more buildings and has been simplified under the 2024 Act.
The Leasehold and Freehold Reform Act 2024 makes wide-ranging changes to leasehold law in England and Wales. Key changes include: proposing to abolish marriage value (not yet in force), removing the two-year ownership qualifying period for lease extensions and freehold purchases, extending the standard lease extension term from 90 to 990 years, strengthening leaseholders' rights to challenge service charges, and making it easier to exercise the Right to Manage.
Not yet. The 2024 Act includes provisions to abolish marriage value but these require further secondary legislation (statutory instruments) to take effect. As of June 2026, marriage value remains payable on leases below 80 years. There is no confirmed implementation date. Leaseholders with short leases should not delay extensions on the assumption that abolition is imminent.
The 2024 Act extends the standard statutory lease extension term from 90 years to 990 years (for both houses and flats). This change is expected to come into force in 2026, subject to secondary legislation. Once in force, leaseholders extending their lease will receive a 990-year extension rather than the current 90 years, making re-extension essentially unnecessary for any practical lifetime.
The 2024 Act does not directly cap or ban ground rent on existing leases. The Leasehold Reform (Ground Rent) Act 2022 banned ground rent on new leases, but existing ground rent obligations remain unchanged under both Acts. However, as part of the broader reform package, the government has consulted on potential remedies for leaseholders trapped with onerous ground rent clauses in existing leases.
🇺🇸 American buying a UK flat?
The American's Guide to Buying a UK Leasehold Flat
30 pages. Ground rent, the 80-year rule, marriage value, stamp duty, US tax reporting and the 2026 reforms — all in plain American English. Written by the LeaseVault team.
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We'll notify you when 2024 Act provisions come into force, new rates are published, and when landmark Tribunal decisions affect your premium.