Leasehold Reform in 2026: What Buyers and Sellers Actually Need to Know Right Now

If you own or want to buy a leasehold flat, you've probably feeling frustrated already. Ground rent keeps getting more expensive. Lease extension quotes are intimidating. Service charges are increasingly vague. And every few months you see another news story promising that reform is "finally" coming to fix it all.

So, what's actually true? Has anything actually changed yet?

The honest answer is yes, although only a little so far. Not as much as the headlines suggest, and not as quickly. Here's what's genuinely law today, what's still stuck 'in progress', and what it means for your move.

What's changed so far for leaseholders

The Leasehold and Freehold Reform Act 2024 (LAFRA) received Royal Assent back in May 2024. Since then, the government has switched on a handful of its provisions, while the rest wait for further legislation.

Here's what you need to know today:

• The two-year ownership rule is gone. You used to have to own your leasehold property for two years before you could apply to extend the lease. That requirement ended in January 2025, so leaseholders do not need to have owned their home for 2 years before qualifying for the right to extend their lease or buy the freehold.
• Ground rent is already capped for new leases. Since June 2022, ground rent has effectively been abolished for most new long residential leases in England and Wales.
• A legal challenge has been dismissed. A group of major freeholders took the government to court over the reforms, including the plan to scrap "marriage value" from lease extension calculations. The High Court threw out that challenge in October 2025, clearing a path for the bigger changes to move forward.  In April 2026, the Court of Appeal gave permission to appeal to five groups of freeholders seeking to appeal their unsuccessful judicial review challenge to the Leasehold and Freehold Reform Act 2024 and the appeal is likely to be heard later this year or early 2027.

What's coming soon

This is where most of the confusion sits, and where sellers and buyers most often assume something's already in force when it isn't.

Cheaper lease extensions and freehold purchases

LAFRA promises to remove marriage value from the calculation entirely, which could significantly reduce the cost of extending a short lease. It's a big deal for anyone with a lease under 80 years. The problem is that this provision, along with several others covering enfranchisement, can't be switched on yet. The Act has some technical flaws that need fixing first.

The Commonhold and Leasehold Reform Bill

The government published a draft Commonhold and Leasehold Reform Bill in January 2026. It aims to make commonhold ownership the default for new flats, ban new leasehold flats being sold at all, and cap ground rent for existing leaseholders at £250 a year. The King's Speech confirmed the bill will be introduced during the 2026 to 2027 parliamentary session.

Realistically, that means formal debate, scrutiny and amendments still lie ahead. Most commentators expect full implementation to land in 2027 at the earliest.

Service charges and building safety

In July 2026, the government announced further leaseholder protections on the way, including clearer service charge breakdowns, annual building reports and stronger rights when disputes arise. A consultation is also underway on how lease extension costs should be valued going forward. Again, most of this is pencilled in for 2027.

What this means for you right now

If you're buying or selling a leasehold property in 2026, here's the practical takeaway:

• Don't wait for reform before extending a short lease. If your lease has dropped below 80 years, the marriage value savings aren't available yet, and nobody can say for certain when they will be. Waiting could cost you more in the long run if your lease term keeps falling.
• Ground rent on new leases is already sorted. If you're buying a new-build flat, this shouldn't be an issue.
• Expect lenders and buyers to keep asking questions. With reform in the news, buyers are more switched on than ever about lease length, ground rent terms and service charges. Being upfront with clear information keeps your sale moving.
• Get advice specific to your lease. Reform is complex, phased and still moving. A blanket answer rarely fits an individual property.

How DezrezLegal can help

Leasehold transactions come with more moving parts than freehold ones, and reform only adds to that. Our experts keep across every change so you don't have to, and we'll give you a clear, practical view of where your lease actually stands today, not where the headlines say it might stand next year.

If your lease is getting short, or you're buying a leasehold flat and want to understand exactly what you're taking on, talk to us early. It's the one thing that consistently saves people time, money and stress.

Explore our Lease Extension service today.