Update on the Leasehold and Freehold Reform Act 2024

We previously discussed this piece of legislation on 3 February 2025, focusing on the abolishment of the two-year ownership rule which makes it easier for existing leaseholders to buy their freehold or extend their lease.

On 21 May 2025 the Government published a refresher on Leasehold and Freehold Reform (LFRA), setting out what is still to come. It highlighted that the key changes under LFRA will be that it will:

• make it cheaper and easier for leaseholders in houses and flats to extend their lease or buy their freehold, including by removing the requirement to pay marriage value.
• increase the standard lease extension term to 990 years, with ground rent reduced to a peppercorn (zero financial value), upon payment of a premium.
• change the qualifying criteria to give more leaseholders the right to extend their lease, buy their freehold and take over management of their building.
• ban the granting of new leasehold houses (with some exceptions).
• improve the transparency of:
  • service charges and give leaseholders a new right to request information about service charges and the management of their building.
  • administration charges and buildings insurance commissions.
• remove the presumption that leaseholders pay their landlord’s legal costs when challenging poor practice and give them a new right to apply to claim their legal costs from their landlord.
• extend access to redress schemes for leaseholders where the freeholder manages the property directly.
• ensure that relevant property sales information is provided to leaseholders in a timely manner.

When will leaseholders benefit?

Although the LFRA has received Royal Assent, the majority of the provisions are not yet in force. Many will require further consultation and secondary legislation to be commenced.

The Labour government has promised to bring about the changes “as quickly as possible” but appreciates that the task at hand is complex and should not be rushed.

It is suspected that the remaining changes may not come about until 2026 at the earliest, so if you are considering extending your lease or purchasing your freehold, it may be worth speaking to a solicitor first to consider whether you should wait a while.

How can Pinney Talfourd Help

With many of the new provisions under the LFRA still awaiting implementation, understanding your current legal position is essential.

Our experienced Property team is on hand to guide you through the complexities of leasehold reform and help you make informed decisions about extending your lease or purchasing your freehold.

Contact our team on 01708 511 000 to find out more.