The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, and much of the coverage since has left buyers and sellers with the impression that leaseholder rights…
The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, and much of the coverage since has left buyers and sellers with the impression that leaseholder rights changed overnight. They did not. Royal Assent means an Act has passed through Parliament and been formally approved; it does not mean every section is live. Most substantive provisions require separate commencement regulations before they take legal effect, and the timing of those regulations sits with the government of the day.
That gap is where the confusion around leasehold reform 2024 uk really begins. Headlines about cheaper lease extensions, the removal of the two-year ownership rule before extending a lease, changes to marriage value (the extra sum payable when a lease drops below 80 years), and reforms to service charge transparency have all been reported as if they already apply. In practice, some measures are in force, some are partly in force, and others remain pending secondary legislation. The position can shift between the time an offer is made and completion.
Solicitor Lauren Basger notes that checking the current commencement status of the specific provision you are relying on matters more than the Act's headline promises. Before extending a lease, buying a flat with a short term remaining, or negotiating on a freehold purchase, that verification should come first, not last.
What Has Actually Come Into Force Versus What Is Still Pending
The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, but Royal Assent (the point a bill becomes an Act) is not the same as commencement (the point provisions actually take legal effect). Much of the Act depends on secondary legislation, the detailed regulations government still needs to lay before parts of it can be used.
A limited set of provisions has been brought into force. These include certain restrictions on rentcharge remedies (the older enforcement powers a rentcharge owner could use against a freeholder) and some procedural changes around right to manage, where commenced. The rest, including the headline items buyers most often ask about, sits in the "awaiting commencement" category.
That waiting list covers the reforms people have read about in the press: changes to how lease extension and freehold purchase premiums are calculated, the removal of the two-year ownership rule before a leaseholder can extend, the standard 990-year extension term, and the ban on new leasehold houses. None of those should be assumed live simply because the Act exists. Solicitor Lauren Basger notes that buyers regularly ask about entitlements under sections that have not yet been switched on, and that acting on that assumption can lead to real cost.
The authoritative position on what is in force at any given date comes from government commencement regulations and the official commencement announcements, not from news coverage or summary articles (including this one). If a provision matters to your purchase, it should be checked against the current commencement status on the date of your transaction, because that position continues to change.
The Headline Reforms Buyers Ask About, And Their Real Status
The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, and buyers often assume the headline changes are already working in their favour. In practice, most of the substantive provisions still need secondary regulations (detailed rules made by ministers after the Act) before they take effect.
Four changes come up in almost every conversation:
- Removing the two-year ownership rule. New leaseholders would be able to extend their lease or buy the freehold from day one, rather than waiting two years. This section was commenced in January 2025, so it is one of the few parts genuinely live.
- A 990-year standard extension term. The Act proposes replacing the current 90-year (flats) and 50-year (houses) extensions with a single 990-year term at a peppercorn (nominal) ground rent. This is not yet in force.
- Abolishing marriage value. Marriage value is the extra sum a freeholder can currently claim when a lease drops below 80 years. The Act removes it, but the valuation provisions await commencement.
- A new premium and valuation framework. The formula for calculating what a leaseholder pays to extend or enfranchise (buy the freehold) is being rewritten, with prescribed rates set by government. Those rates have not been published.
Lauren Basger, solicitor, notes that buyers should treat the Act as a direction of travel rather than a live rulebook, and check the current commencement position at the point of purchase, because the position is moving and dates should not be assumed.
Ground Rent, Service Charges and the Ban on New Leasehold Houses
The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, but not every provision is live. Buyers looking at the leasehold reform 2024 uk landscape should understand that parts of the Act came into force on Royal Assent, others have been commenced through later regulations, and several significant sections still await secondary legislation before they take effect.
Ground rent is the clearest example. The previous government consulted on capping existing ground rents, but that proposal was not enacted in its original form. For new long residential leases granted since June 2022, ground rent has already been restricted to a peppercorn under earlier legislation. Wider changes to historic ground rents remain under review.
The ban on new leasehold houses is included in the 2024 Act, but the relevant provisions require commencement regulations before they bite. Until then, houses can still, in principle, be sold on a leasehold basis, subject to limited exceptions the Act contemplates.
On service charges, leaseholders already have statutory rights under the Landlord and Tenant Act 1985 to request a summary and challenge unreasonable charges at the First-tier Tribunal. The 2024 Act introduces stronger transparency duties and standardised demand formats, though many of those obligations depend on commencement and detailed regulations.
Lauren Basger, solicitor, notes that buyers should check which specific provisions are in force at the date of their transaction rather than assuming the whole Act applies.
What This Means If You Are Buying a Leasehold Flat Today
The Leasehold and Freehold Reform Act 2024 received Royal Assent, but many of its provisions require secondary legislation before they take effect. Some measures are in force; others remain pending with no fixed date. Lauren Basger, solicitor, notes that buyers should treat the current position as a mixed picture rather than a completed overhaul, and check the commencement status of any provision they are relying on.
If you are buying now, focus on what is in the lease today, not what might change.
- Lease term. Shorter leases (broadly under 80 years) become expensive to extend because of marriage value, the extra premium payable to the freeholder. Ask your solicitor to confirm the unexpired term and flag anything approaching that threshold.
- Ground rent review clauses. Escalating or doubling ground rents can affect mortgageability and future sale. Read the review mechanism carefully.
- Service charge history. Request at least the last three years of accounts and any Section 20 consultation notices about major works.
- Reserve fund. Check whether one exists and whether it looks proportionate to the building's likely upcoming repairs.
Relying on future reform to cure a short lease or onerous ground rent is risky, the timetable is uncertain and the final detail may differ from expectations.
Price that risk in. A short lease, aggressive ground rent, or thin reserve fund are all legitimate grounds to negotiate the offer down or ask the seller to start a statutory lease extension before completion.
Extending Your Lease or Buying the Freehold: Act Now or Wait?
If you already own a leasehold flat or house, the temptation is to sit tight and wait for the Leasehold and Freehold Reform Act 2024 to deliver a cheaper premium (the sum paid to the landlord to extend or buy out). That gamble carries real risk. Several of the valuation changes most likely to reduce premiums are not yet in force, and the timetable for commencement remains uncertain.
Meanwhile, the calendar keeps moving. Once a lease drops below 80 years, marriage value applies under the current regime, which typically pushes the premium up sharply. Waiting a year to save money can, in practice, cost more if your lease crosses that threshold before the relevant reforms commence.
Sellers face a separate problem. Many mortgage lenders are cautious about short leases, and buyers often negotiate hard or walk away entirely. A property with a lease heading toward 80 years can become difficult to market at the price you expected.
Solicitor Lauren Basger notes that proceeding under the existing rules still makes sense in several scenarios: leases approaching 80 years, planned sales in the near term, or where a landlord is currently cooperative. For others with long leases and no sale in prospect, waiting may be reasonable, provided the decision is reviewed as commencement details are confirmed.
How Your Conveyancing Solicitor Will Approach Enquiries and Lease Review
When you buy a leasehold flat in England or Wales, your conveyancer's job is to build a clear picture of what you are actually taking on. That usually begins by raising an LPE1 (Leasehold Property Enquiries form) and requesting the management pack from the freeholder or managing agent. These documents reveal service charge history, planned major works, insurance details, and any disputes.
Lauren Basger notes that lease covenants deserve careful scrutiny, the promises you make as leaseholder, including restrictions on alterations, subletting, and pets. Ground rent provisions are reviewed for escalation clauses, and service charge mechanics are checked for how costs are apportioned and challenged. Where the block is over 11 metres, building safety information and any cladding remediation status must be pinned down, ideally with an EWS1 form or equivalent evidence.
The solicitor will then produce a report on title translating the lease into plain terms: length of term remaining, financial obligations, and risks worth flagging before exchange.
On the Leasehold and Freehold Reform Act 2024, Lauren Basger's approach is to advise on the law as it currently stands, not on provisions still awaiting commencement regulations. That means treating potential future benefits, such as changes to enfranchisement or ground rent, as pending rather than assumed, so your decision rests on today's position.
Next Steps: Speak to a Conveyancing Solicitor Before You Rely on the Reforms
The Leasehold and Freehold Reform Act 2024 is on the statute book, but not every provision is in force. Some measures took effect shortly after Royal Assent; others depend on commencement regulations and secondary legislation that are still awaited. Acting on a headline rather than the current position can be costly.
Lauren Basger, a conveyancing solicitor, notes that buyers, existing leaseholders and those considering enfranchisement (buying the freehold) or a lease extension should get advice tailored to their specific title before committing.
Useful questions to raise with a solicitor:
- Which sections of the 2024 Act are actually in force today?
- How does the current law affect my ground rent, service charge or marriage value position?
- Should I proceed now, or wait for pending provisions?
- What costs, valuations and timings are realistic in my case?
If you are buying, extending or looking at freehold purchase in England and Wales, book a consultation before you sign or serve notice.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.