It is now more than a year since the Leasehold and Freehold Reform Act was passed, the final major legislation from the last Parliament. The Act is designed to bring long-awaited changes to leasehold property law across England and Wales.
Key Proposed Reforms
The Act includes several important reforms:
- Removing the two-year ownership requirement, so leaseholders can apply for a statutory lease extension immediately.
- Extending statutory lease extension terms from 90 years (plus the remaining term) to 990 years.
- Reforming lease extension premiums, with revised deferment rates and the abolition of marriage value, reducing costs, especially for leases under 80 years.
- Expanding leasehold enfranchisement eligibility, allowing more leaseholders in mixed-use buildings to purchase the freehold.
Current Progress
So far, only the removal of the two-year ownership requirement has come into effect. Progress has been delayed due to a judicial review from major freeholders and charities. They argued the reforms could negatively impact property rights and future income, raising human rights concerns.
High Court Decision
On 24 October 2025, the High Court dismissed the challenge, confirming that the Act is compatible with human rights legislation. This clears the way for the government to implement the remaining reforms and to support the commonhold system as a modern alternative to traditional leasehold ownership.
What This Means for Leaseholders and Landlords
Many leaseholders and landlords are now wondering whether to wait for the reforms before extending a lease or acquiring a freehold. While the High Court ruling is positive, it does not provide immediate clarity, and circumstances can vary.
For tailored advice on lease extensions or freehold acquisitions, please contact our Residential Property team. Bradley Powell, Heidi Vanlangenaeker, or Joseph Jordan would be happy to discuss your options.
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