Leasehold reform in England currently occupies a curious position. The Leasehold and Freehold Reform Act 2024 (LFRA) is law. It has passed Parliament, but is currently being challenged in the Courts, and much of it remains unimplemented. Most of its central provisions were never meant to commence immediately and require detailed secondary legislation to be passed.
LFRA, together with a new bill currently going through Parliament (but which will require many months of careful scrutiny) would give effect to wide-ranging and ambitious reforms, aiming to give leaseholders more control of management, to make it easier and cheaper for homeowners to extend leases or acquire their freehold, abolish new ground rents, establish a universal cap on pre-existing ground rents, and ultimately abolish the leasehold system.
Sound simple and fair?
In reality, it is not easy to achieve, and LFRA was rather rushed through Parliament prior to the 2024 General Election without the sort of extensive consultation needed for such sweeping changes.
One major obstacle not to be underestimated is: how do you improve leaseholders’ rights without trampling on freeholders’ property interests? Following the passing of LFRA, six groups of substantial freeholders issued legal proceedings to challenge many provisions of this legislation. Whilst the High Court dismissed the claims on 24 October 2025, earlier this month, the Court of Appeal granted permission to appeal the High Court decision on all grounds.
As we head further into 2026, it is worth pausing to take stock of what has actually been brought into force with a particular focus on lease extensions and enfranchisement and what, conspicuously, has not.
The Short List – What Is in Effect
- The End of the Two‑Year Qualifying Period
The most tangible reform to lease extension and enfranchisement so far is the abolition of the two‑year ownership requirement before a leaseholder can qualify to make either of these claims. This took effect on 31 January 2025 and allows leaseholders to act immediately on purchase (subject, in practice, to Land Registry timing).
However, we have a couple of honourable mentions in the interests of balance:
- Right to Manage: A Quiet Expansion
From 3 March 2025, LFRA widened access to the Right to Manage (RTM) significantly by increasing the permitted non‑residential element in mixed‑use buildings from 25% to 50%. In addition, Landlords can no longer automatically recover their legal costs for RTM claims.
- Some Technical, Low‑Profile Commencements
A handful of provisions, particularly around estate rent charges and Building Safety Act alignment, came into force either on Royal Assent or shortly thereafter. These are important in context but do not go to the economic heart of leasehold reform.
The Long List – What Has Not Been Brought into Force
- The 990‑Year Lease Extension
LFRA famously promises lease extensions of 990 years at a peppercorn rent. This remains unavailable.
- The Abolition of Marriage Value
Perhaps the most politically charged reform, the removal of marriage value, does not exist in practice. For now, tribunals continue to apply the old law, and marriage value remains very much alive.
- Cheaper Enfranchisement (In Theory Only)
The aims of limiting recoverable landlord costs, capping ground-rent valuation assumptions, and simplifying the enfranchisement process cannot be achieved without secondary legislation. As a result, enfranchisement remains procedurally improved but financially unchanged.
Conclusion: Where We Are Now
Leasehold reform has not failed but is currently in suspended animation. It is politically popular, legally complex, and economically sensitive. The obstacles are resolutely technical, and the litigation potential is alarmingly evergreen.
What is Next?
When and if LFRA comes fully into force, it should make it cheaper for people with leases below 80 years or with a high ground-rent to extend their leases, and allow longer extensions of 990 years.
But there is no guarantee that it will make lease extensions cheaper for people with leases above 80 years who don’t have a high ground rent. For these people, it may make it more expensive.
What Can a Leaseholder Do?
What leaseholders currently have is earlier access to rights and the existing leasehold enfranchisement system – 90-year extensions are available with a nil ground rent -but with payment of landlords’ valuation and legal conveyancing fees and marriage value forming part of the price to be paid if the lease is under 80 years.
Leaseholders who don’t have very long leases at a nil rent have a very real dilemma; wait and see if the legislation eventually produces a better outcome than proceeding now would have or take control and proceed now. Market forces may dictate what you do, e.g. if you wish to sell or remortgage.
However, leases are only going one way (at present) – and that is getting shorter.
If the Leasehold Reform has raised any questions, Tania Austin, Partner and Head of Property can support you. Contact her on +44 (0) 20 7851 0108 or ta@branchaustinmccormick.com.
