The Leasehold and Freehold Reform Act 2024 is now law. However, not all parts of the Act are in force yet, as the government still needs to introduce additional regulations to bring some of the changes into effect.

A consultation on these follow-up regulations, called Strengthening Leaseholder Protections, closed in September 2025. The government’s formal response is still awaited.

Extending a lease

Since 31 January 2025, leaseholders no longer need to own their property for two years before they can apply to extend their lease or buy the freehold. This process is often called enfranchisement. Once the property is registered in the leaseholder’s name, they can serve notice on the freeholder to begin the process.

Previously, leaseholders could only extend their lease by:

  • 90 years for flats, or
  • 50 years for houses.

Under the new law, leases can now be extended by 990 years. This is a major change and offers long-term security, especially for leaseholders whose leases were close to, or already below, 80 years.

Removal of “marriage value”

Another important reform is the removal of something known as marriage value.

Marriage value is the extra value created when a short lease (under 80 years) is extended. Under the old system, leaseholders usually had to pay 50% of that increase in value to the freeholder. This often made lease extensions expensive.

Freeholders challenged the removal of marriage value in the courts, but the High Court dismissed the challenge last year.

In practical terms, the old rules meant that extending a lease could be costly but not extending it could create other problems. Many mortgage lenders are reluctant to lend on properties with leases under 80 years, which can make selling or refinancing difficult.

Removing marriage value should make lease extensions more affordable and help protect property values. It should also make it easier for leaseholders to sell or remortgage. Further details on how lease extension values will be calculated are expected in the government’s upcoming regulations.

Ground rent changes

The Act also confirms that when a lease is extended, the ground rent must be reduced to a peppercorn (effectively zero), whether the property is a flat or a house.

This is widely seen as a positive step. Some older leases included ground rents that doubled over time, which could make properties harder to sell or remortgage. In the past, leaseholders often had to negotiate costly changes with freeholders and cover their legal fees. The new rules remove that uncertainty when a lease is extended.

Whether you’re a leaseholder looking to extend your lease or a freeholder navigating the new reforms, it’s crucial to understand your rights and options under the Leasehold and Freehold Reform Act 2024. Contact our expert conveyancing solicitors today on 01254 606 008 or email us to discuss your property and next steps.