When Will the Leasehold and Freehold Reform Act be Enforced?
The Leasehold and Freehold Reform Act 2024 is now law, but most of its major changes have not yet happened.
They are being implemented in stages through secondary legislation, and the timeline for the most important reforms is currently on hold due to a legal challenge from a group of freeholders.
This article will give you a clear timeline of the changes already in force and what's still to come. The goal is to help you understand your new rights, when you can act on them to save time and money, and what to do next.
What's in force today? (August 2025)
While the full Leasehold and Freehold Reform Act is still a work in progress, some key parts of the new law have already been implemented. Since the beginning of 2025, the following changes are now in place in England and Wales:
The two-year ownership rule is gone
Before the Leasehold Reform Act, you had to have owned your property for at least two years to apply for a lease extension or to buy your freehold. This rule has been removed. You can now make a claim immediately after you buy a property.
Right to Manage is easier
The rules to qualify for a "Right to Manage" (RTM) claim have changed. You can now take over the management of your building even if up to 50% of the internal space is non-residential (like shops or offices). This is up from the old limit of 25%.
You don't pay the Freeholder's fees for RTM claims
In the past, you were typically responsible for the freeholder’s legal costs when making a Right to Manage claim. The new law changes this, so both parties are now responsible for their own costs.
Other immediate changes
The Act also introduces greater transparency over service charges and a ban on freeholders charging commissions for buildings insurance.
You will now receive a standardised service charge demand form and annual report, making it easier to scrutinise and challenge unfair fees.
These changes are the first steps of the Leasehold and Freehold Reform Act 2024. The biggest changes are still to come, but they are currently delayed.
- RICS Valuers for the lease premium.
- Handling of the Section 42 Notice.
- Negotiations.
- The full Lease Extension process.
- Tribunal cases.
What's causing the delays?
The main reason most of the Act's provisions are not yet in force is a legal challenge. A group of freeholders, including large property estates, are challenging key parts of the Act in the High Court.
The freeholders argue that three of the reforms are against their human rights. They claim the Act unfairly takes away their property value without proper compensation. The main points they are challenging are:
- The abolition of "marriage value" for calculating lease extensions.
- A new cap on ground rents in the same calculation.
- The removal of their right to recover legal costs from leaseholders.
A court hearing on the matter took place in July 2025, but a decision has not yet been announced. This legal process is what is delaying the implementation of these key reforms.
What's still to come?
The biggest and most anticipated changes from the Leasehold and Freehold Reform Act 2024 have not yet come into force. These are the reforms that will have the most significant impact on the cost and process of extending your lease.
- Cheaper Lease Extensions: The Act aims to make extensions much cheaper for people with short leases (under 80 years) by abolishing "marriage value." This is the part of the calculation that gives freeholders a share of the property's increase in value once a lease is extended.
- 990-Year Lease Extensions: The new law will give you the right to extend your lease to a standard 990 years, up from the current 90 years for flats and 50 years for houses. This will give you much more security and remove the need for future extensions.
- No More Ground Rent: For all future lease extensions, the ground rent will be set to a "peppercorn," which means zero. The government has also confirmed it will consult on how to cap or regulate ground rent on existing leases.
- Ban on New Leasehold Houses: The Act will ban the sale of new leasehold houses, except in a few special cases. This means that, in the future, all new houses will be sold as freehold.
The timeline for these changes is currently uncertain and depends on the legal challenge and a future government consultation on how the reforms will be valued and implemented.
- RICS Valuers for the lease premium.
- Handling of the Section 45 Counter Notice.
- Negotiations.
- The full Lease Extension process.
- Tribunal cases.
Preparing for the changes
With some of the biggest reforms still delayed, many leaseholders are unsure what to do right now. The answer depends on your situation, especially the length of your current lease.
But there are a few general things you can do to get ready:
- Talk to a Specialist: The law is complex. Speaking with a solicitor who specialises in leasehold reform can help you understand your specific rights and options. They can give you advice on whether to act now or wait.
- Know Your Lease: Check your lease documents. Pay close attention to the remaining term and your ground rent clauses. This information is key to deciding your best course of action.
- Stay Informed: Keep an eye on official announcements from the government and reliable sources. The timeline for when the remaining reforms will be implemented will become clear once the judicial review is complete.
Leaseholders with a lease below 80 years might benefit from waiting, as the abolition of marriage value could make their extension cheaper.
But those with a lease close to or just over 80 years might want to act now to avoid the extra cost if the new laws are delayed further.
- Fixed Fees.
- Leasehold Specialist Solicitors.
- RICS Surveyor Negotiations.
- Complicated jargon made simple.
- Preparation and serving of Section 42 Notice.
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