If you own a leasehold flat in the UK, the rules that govern your lease are about to change in ways that could save you thousands — or leave you paying more than you expected. The Leasehold and Freehold Reform Act 2024 is passed but not yet in force, and a second piece of legislation — the Commonhold and Leasehold Reform Bill — was announced in the 2026 King’s Speech. Together, they promise cheaper lease extensions, a ground rent cap, and an end to new leasehold flats. But the timeline is uncertain, and some leaseholders could end up worse off.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
These reforms don’t affect every leaseholder the same way. Someone with a 70-year lease and high ground rent stands to gain significantly. Someone with a 90-year lease and a peppercorn ground rent might see their extension costs rise. The difference comes down to how the new rules treat marriage value, ground rent, and lease length. Here’s what you actually need to know.
Before going further, it helps to be clear on what leasehold actually means.
What I tend to notice is that most leaseholders don’t realise how much the timing of their extension matters. Waiting even a year after the reforms take effect could change the cost by thousands. If you’re thinking about extending, it’s worth weighing the current cost against what the new rules might mean for your specific lease. For a clearer picture of how lease length affects value, understanding your options and costs when breaking a lease can help frame the bigger picture.
What lease extension actually costs now — and what it could cost under the reforms
The price of extending a lease depends on three things: the current lease length, the ground rent, and the property value. Under the current system, the biggest cost for short leases is marriage value — the idea that extending the lease increases the property’s value, and the freeholder gets half of that increase. For a lease under 80 years, that can add tens of thousands to the bill.
The 2024 Act abolishes marriage value entirely. That’s a direct saving for anyone with a sub-80-year lease. But the trade-off is that the calculation for leases above 80 years may change in ways that aren’t yet clear. Homehold.org notes there is no guarantee the reforms will make extensions cheaper for leases above 80 years or low ground rent cases — they could become more expensive.
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| Lease Length | Current Cost Driver | Post-Reform Cost Driver | Likely Impact |
|---|---|---|---|
| Under 80 years | Marriage value + ground rent | Ground rent only (marriage value abolished) | Significantly cheaper |
| 80–99 years | Ground rent + statutory formula | New formula (details pending) | Uncertain — could rise or fall |
| 100+ years | Minimal ground rent cost | Minimal ground rent cost | Little change |
The practical takeaway is that anyone with a lease under 80 years and high ground rent has the most to gain by waiting for the reforms. But waiting carries risk — if the new formula for longer leases ends up being more expensive, and your lease ticks past 80 years in the meantime, you could lose out. A real estate lawyer can help you model both scenarios before you decide.
Where leaseholders get the reforms wrong
Assuming the 2024 Act is already law
The Leasehold and Freehold Reform Act 2024 is passed but not yet in force. It cannot be implemented until the Commonhold and Leasehold Reform Bill completes its Parliamentary stages. That means the 2024 Act’s provisions — including the abolition of marriage value and 990-year extensions — are not available yet. Anyone who assumes they can extend under the new rules today is mistaken. The current system still applies, and will continue to apply until both pieces of legislation are fully enacted.
Thinking all leaseholders will pay less
It’s easy to assume reform means cheaper for everyone. But the research from Homehold.org is clear: there is no guarantee the new formula will reduce costs for leases above 80 years or low ground rent cases. In fact, the opposite could happen. If you have a 95-year lease with a peppercorn ground rent, the current cost to extend is relatively low. Under a new formula that factors in different variables, that cost could rise. The key is to get a professional valuation under both the current and proposed systems before making a decision.
Ignoring the freeholder challenge to marriage value abolition
The abolition of marriage value is contentious. Freehold owners have already indicated they will challenge it through legal proceedings. If those challenges succeed, the change could be delayed, watered down, or even reversed. Leaseholders who have been banking on marriage value disappearing should have a backup plan. If you’re within a year or two of your lease dropping below 80 years, it may be safer to extend now under the current rules rather than gamble on a reform that might not arrive in its current form.
Overlooking the ground rent cap timeline
The proposed £250 ground rent cap applies to existing leases — but only after the Commonhold and Leasehold Reform Bill becomes law. That Bill was only announced in the 2026 King’s Speech. It hasn’t been drafted, debated, or passed. The timeline is uncertain, and further consultation could push it into 2027 or beyond. If you’re paying high ground rent now, you can’t simply stop paying it and cite the proposed cap. You remain legally obligated under your current lease until the law changes. For disputes over ground rent, a tenant and landlord lawyer can clarify your obligations.
How to decide whether to extend your lease now or wait for reform
Step one: get your current lease details straight
You need three numbers: the exact number of years remaining on your lease, the annual ground rent, and an estimated current market value of your flat. Your lease document will have the first two. For the third, ask a local estate agent for a valuation or check recent sale prices of similar flats in your building. Without these three figures, you can’t compare the current cost of extending against what the reforms might offer.
Step two: calculate the cost under current rules
Under the current system, the cost to extend is calculated using a statutory formula that includes the ground rent, the lease length, the property value, and — for leases under 80 years — marriage value. You can get a rough estimate using online lease extension calculators, but for an accurate figure you’ll need a surveyor who specialises in leasehold valuations. The process involves serving a formal notice under the Leasehold Reform, Housing and Urban Development Act 1993, which triggers a statutory timeline. The freeholder has a set period to respond, and if you can’t agree on the price, the matter goes to a tribunal.
Step three: model the post-reform scenario
Once you have the current cost, ask a specialist surveyor to estimate what the same extension would cost under the proposed reforms. The key variables are whether marriage value would be abolished (saving you money if your lease is under 80 years) and whether the new formula would increase the cost for longer leases. Because the new formula hasn’t been published yet, this is an estimate — but it gives you a range to work with. If the post-reform cost is significantly lower and your lease is under 80 years, waiting may make sense. If the post-reform cost is higher or uncertain, extending now could be the safer bet.
Step four: factor in timing and risk
The reforms were promised for “2025 to 2026,” but further consultation and the new Bill will likely cause additional delays. If your lease is approaching 80 years, every year you wait pushes it closer to the marriage value threshold. A lease that’s 82 years today will be 79 years in three years — and if the reforms haven’t arrived by then, you’ll be facing marriage value costs that are higher than they are now. The risk of waiting is that the reforms are delayed, watered down, or challenged in court. The risk of extending now is that you pay more than necessary if the reforms deliver what they promise. There’s no single right answer — it depends on your lease length, your ground rent, and your tolerance for uncertainty.
Frequently asked questions about leasehold reform
Can I extend my lease to 990 years right now? ▾
Will the ground rent cap apply to my lease automatically? ▾
What happens if my freeholder challenges the marriage value abolition? ▾
Will new leasehold flats be banned entirely? ▾
Should I extend my lease now if it’s under 80 years? ▾
Can I get professional help to understand my options? ▾
The real cost of waiting on leasehold reform
The biggest risk for leaseholders isn’t the reforms themselves — it’s the uncertainty around when they’ll arrive and what the final version will look like. Two separate pieces of legislation, legal challenges from freeholders, and a consultation process that hasn’t even started for the new Bill all point to delays. If your lease is under 80 years and you can afford to extend now, the safest move may be to do so under the current rules and treat any future savings as a bonus. If your lease is longer and your ground rent is low, waiting carries less risk — but don’t assume the reforms will make things cheaper.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read how to avoid dodgy landlords in the UK.
Sources and Further Reading
Breaking a lease in the UK: understanding your options and costs — A practical guide to the costs and legal steps involved in ending a lease early, useful context for anyone weighing extension timing.
Navigating rental conflicts: a quick guide for the UK — Covers dispute resolution with landlords and freeholders, relevant if ground rent or service charge disagreements arise during the reform period.
Homehold.org (2026). Leasehold Reform: What You Need to Know. 🔗
UK Government (2026). King’s Speech 2026: Commonhold and Leasehold Reform Bill announcement. 🔗
