Daniel DaviesCan leaseholders in England finally extend their leases without paying a small fortune? In 2026, the answer is yes — if you know which provisions of the Leasehold and Freehold Reform Act 2024 are now in force and how to use them. For millions of flat owners watching their lease clock tick below 90 years, the reforms reshape costs fundamentally.
What Is the Leasehold and Freehold Reform Act 2024?
The Leasehold and Freehold Reform Act 2024 (LAFRA 2024) received Royal Assent on 24 May 2024 and represents the most significant overhaul of leasehold law in England and Wales in decades. It replaces a patchwork of rules under the Leasehold Reform, Housing and Urban Development Act 1993 and the Leasehold Reform Act 1967 with a more coherent framework designed to shift power from freeholders to leaseholders.
The Act covers three broad areas: reforming how lease extensions and freehold purchases are calculated and priced; improving transparency around service charges and ground rents; and strengthening leaseholders' rights to manage their buildings. Not all provisions came into force simultaneously — implementation has been phased, with secondary legislation required to activate many provisions. By mid-2026, the landmark valuation and procedural reforms are in effect.
Which Changes Are Actually in Force in 2026?
The table below summarises the key shifts that leaseholders can act on in 2026:
| Rule | Before LAFRA 2024 | In Force 2026 |
|---|---|---|
| Standard lease extension term | 90 years (flats) / 50 years (houses) | 990 years |
| Marriage value | Charged on leases under 80 years remaining | Abolished |
| 2-year ownership rule | You had to own the property for 2 years first | Removed entirely |
| Ground rent after extension | Peppercorn (zero) | Peppercorn (zero) — unchanged |
| Freeholder's legal costs | Leaseholder paid the freeholder's solicitor | Capped and regulated |
| Non-residential floorspace limit | Max 25% commercial use to qualify | Raised to 50% |
The abolition of marriage value is the single most financially significant change. Previously, when a lease fell below 80 years, leaseholders had to pay the freeholder half the increase in the property's value that the extension would create — a payment that could run to tens of thousands of pounds on a London flat. That payment is now gone [Ministry of Housing, Communities and Local Government, 2024].
The removal of the 2-year ownership rule is equally important for buyers: you can now trigger a lease extension or collective enfranchisement the day you complete on a purchase, rather than waiting two years.
What Does Marriage Value Abolition Actually Mean for My Premium?
Marriage value (valeur matrimoniale in the original French property law concept, adopted in English leasehold) is the surplus value that a freeholder historically claimed when the extension itself pushed a property's market price upward. On a lease with 60 years remaining, that surplus could represent 25–40% of the total premium, according to valuations compiled by the Association of Leasehold Enfranchisement Practitioners (ALEP).
Under the new rules, the premium is calculated using a standard present-value formula based on:
- Ground rent capitalisation (the value of future ground rent to the freeholder)
- Reversion value (the freeholder's right to reclaim the property at the end of the lease, discounted heavily for 990-year extensions)
Because marriage value is excluded, a leaseholder on a 60-year lease who previously paid £45,000 may now pay £18,000–£25,000 for the same extension, depending on property value and ground rent level. The actual saving varies — obtain a professional valuation from a Royal Institution of Chartered Surveyors (RICS)-regulated surveyor for a precise figure.
Key takeaway: Marriage value abolition typically cuts premiums by 30–60% on leases with fewer than 80 years remaining. The shorter the lease, the greater the saving relative to the old system.
Can I Really Extend My Lease the Day I Buy?
Yes. The 2-year ownership restriction that previously blocked newly purchased leaseholders from extending has been removed under Section 9 of LAFRA 2024. From the date of completion, a buyer who inherits a short lease can immediately serve a Section 42 notice (now renamed a tenant's notice under the updated framework) on the freeholder to begin the extension process.
This matters enormously in competitive markets. Before 2024, buyers purchasing flats with leases below 85 years often had to factor in two years of professional advice costs, potential mortgage difficulties, and ongoing depreciation before they could act. The removal of this barrier means buyers can now negotiate more confidently, knowing the extension clock starts immediately.
Mortgage lenders — including major UK banks — have updated their policies to reflect this change, making short-lease properties more readily financeable than before [UK Finance, 2025].
How Do I Extend My Lease Cheaply Step by Step?
The process under the reformed framework follows these stages:
- Check your lease length. Open the Land Registry title register for your property (£3 via GOV.UK). Note the date the lease started and the term granted. Deduct elapsed years to find the unexpired term.
- Commission a RICS-regulated valuation. A specialist leasehold surveyor will calculate the premium payable under the new LAFRA 2024 methodology. Fees typically range from £400 to £900 for a standard flat in England [RICS, 2025]. Shop around — at least two quotes.
- Instruct a specialist leasehold solicitor. Not every property solicitor understands the updated statutory notices and timetables. Look for ALEP members or Law Society-accredited specialists in leasehold enfranchisement.
- Serve the tenant's notice on the freeholder. This triggers the statutory timetable. The freeholder has two months to respond with a counter-notice. Costs during this period are fixed by statute — the freeholder cannot pass unlimited legal fees to you.
- Negotiate or proceed to the First-tier Tribunal (Property Chamber). If the freeholder's counter-offer is unreasonable, the tribunal sets the premium based on the LAFRA 2024 valuation methodology. Tribunal applications cost £100–£300 and frequently resolve quickly for clear-cut cases.
- Complete and register. Once agreed, your solicitor completes the deed of variation extending the lease to 990 years. Register the new lease with HM Land Registry (fees based on property value: £20–£500 for most residential properties [GOV.UK, 2025]).
The best way to keep costs low is to avoid informal extensions — agreements reached outside the statutory process. While faster, they offer weaker legal protections and freeholders are not bound by the new premium methodology, meaning you may pay more than under the statutory route.
Just as UK tenants gained strengthened rights through the Renters' Rights Act 2026, leaseholders now have a statutory framework that delivers real cost certainty for the first time.
Should You Buy the Freehold Collectively Instead?
Collective enfranchisement — where the majority of leaseholders in a building jointly purchase the freehold — is often cheaper per person than individual lease extension, especially in blocks of four or more flats. LAFRA 2024 raises the non-residential floorspace threshold from 25% to 50%, bringing more mixed-use buildings within reach of enfranchisement.
Once leaseholders own the freehold, they can grant themselves 999-year leases at nil ground rent, removing the need for future extensions entirely. Managing-agent costs are also eliminated if the leaseholder-owned company self-manages. The upfront premium is split between participants, but so is the cost of specialist legal and valuation advice — making the per-unit total frequently lower than individual statutory extensions.
The process requires forming a Right to Enfranchise (RTE) company, securing agreement from at least 50% of qualifying leaseholders, and serving notice. A specialist solicitor is non-negotiable here; collective enfranchisement is more legally complex than individual extension, and procedural errors can invalidate the notice.
Frequently Asked Questions
Will the Act help leaseholders in Wales? LAFRA 2024 applies to England only. Wales has separate housing legislation; leaseholders in Wales should check the Welsh Government's leasehold reform programme for equivalent provisions.
My lease has 95 years left — should I extend now or wait? There is no urgent financial pressure if your lease sits above 80 years, since marriage value no longer applies at any lease length. However, every year a lease shortens, the present value of the reversion increases slightly, edging premiums upward. If you plan to sell within five years, extending now removes a potential mortgage obstacle for buyers.
Can the freeholder refuse my lease extension? No. If you meet the qualifying conditions (a long lease and a residential flat or house), the right to extend is statutory — the freeholder cannot refuse, only negotiate on the premium. Disputes go to the First-tier Tribunal.
Are ground rents banned on existing leases? No. Ground rents on existing leases are not abolished by LAFRA 2024. They are only reduced to peppercorn (zero) at the point you exercise your statutory right to extend. The Leasehold Reform (Ground Rent) Act 2022 banned ground rents only on new leases granted after 30 June 2022.
Disclaimer: The information on this page is provided for informational purposes only and does not constitute legal or financial advice. Consult a solicitor and a RICS-accredited surveyor specialising in leasehold enfranchisement for advice tailored to your specific property and circumstances.
