Reviewed by: Team of Professional Conveyancers, Chapter Law.
Last fact-checked: 4 November 2026. This guide covers England and Wales, with England-only commencement dates identified separately.
If you own or are buying a leasehold flat, the headlines make it sound as if the whole system changed overnight. It hasn’t. What has changed under leasehold reform 2026, and what hasn’t? As of 4 November 2026, only parts of the Leasehold and Freehold Reform Act 2024 are in force. Qualifying leaseholders no longer have to meet the former two-year ownership requirement before bringing certain statutory lease-extension or freehold-purchase claims, and right to manage is available to more mixed-use buildings. However, the new lease-extension valuation regime and the ban on most new leasehold houses are not yet operational. In England, regulations made on 25 October 2026 have now set a phased timetable for service-charge and related reforms.
That gap matters. Buyers and sellers in Birmingham can easily mistake announced reforms for rules already in force. This guide sets out what is in force, what has a scheduled commencement date, what remains pending, what is only proposed, and what to consider when deciding whether to act now or wait.
Two laws, not one: why leasehold reform headlines confuse people
Most of the confusion comes from mixing up two separate pieces of law.
- The Leasehold and Freehold Reform Act 2024. This has passed. It became law in May 2024, but the government switches its parts on in stages. A part only works once it is formally “commenced”.
- The draft Commonhold and Leasehold Reform Bill. The government published this on 27 January 2026. It is a proposal, not law. It still has to pass through Parliament, and its details can change.
So when you read that a reform is “now law”, ask which law, and whether that part has actually started. “Passed” and “in force” are not the same thing.
Leasehold reform 2026 at a glance
| Reform | Which law | Status (November 2026) | What it means for you now |
|---|---|---|---|
| No two-year wait to extend a lease or buy the freehold | 2024 Act | In force since 31 January 2025 | The two-year ownership requirement has been removed; eligibility and notice requirements still apply |
| Easier right to manage for mixed-use blocks | 2024 Act | In force since 3 March 2025 | Blocks with up to 50% non-residential floor area may now qualify, subject to other eligibility conditions |
| Abolition of marriage value and a new valuation method | 2024 Act | Passed, not in force | Marriage value can still apply where 80 years or less remain |
| Standard 990-year lease extension | 2024 Act | Passed, not in force | Flat extensions still add 90 years for now |
| Changes to landlords’ recoverable costs on statutory lease-extension and enfranchisement claims | 2024 Act | Passed, not in force | You usually still pay the landlord’s reasonable costs |
| Ban on most new leasehold houses | 2024 Act | Passed, not in force | New-build houses can still be sold as leasehold |
| Clearer service-charge demands, information rights and annual reports | 2024 Act | Not yet fully operational; phased commencement dates set for England | Existing rules continue to apply; England has a phased commencement timetable for further protections |
| £250 cap on ground rent for existing leases | Draft Bill 2026 | Proposal only | Government has indicated late 2028 as a possible start, subject to parliamentary timing |
| Proposed ban on leasehold for most new flats, making commonhold the default | Draft Bill 2026 | Proposal only | The proposal does not automatically convert existing leases to commonhold |
What has changed: the leasehold reforms in force now
No more two-year wait to extend a lease
This is the change that affects most flat owners today. Before, you usually had to own a leasehold flat for two years before you could use your legal right to extend the lease. Since 31 January 2025, qualifying leaseholders no longer have to wait two years before bringing a statutory lease-extension claim. Your conveyancer should confirm eligibility and when a valid notice can be served. The two-year ownership requirement has also been removed for qualifying house leaseholders seeking to buy their freehold.
Why does that help? Because a lease costs more to extend as it gets shorter. The old rule meant watching the price creep up while you were legally stuck. If you buy a flat with a short lease, you no longer face the former two-year ownership requirement, although your conveyancer must still check eligibility and the formal requirements for serving notice. Depending on the transaction, it may still be useful for the seller to serve a valid notice before completion and assign the benefit of the claim to you. Ask your conveyancer whether this would help in your circumstances.
Right to manage is easier in mixed-use buildings
Right to manage (RTM) lets flat owners take over the running of their building from the landlord, without buying the freehold. Previously, buildings with more than 25% non-residential floor area generally could not qualify. Since 3 March 2025, that limit has increased to 50%, subject to the other qualifying conditions. In most cases, the RTM company also no longer pays the landlord’s costs for the claim.
That’s a real change in a city like Birmingham, where plenty of blocks have a shop, café or office on the ground floor. If your building was turned down before, it may qualify now. This change applies to right to manage. The 2024 Act also provides for a higher non-residential threshold for collective enfranchisement, but that separate change has not yet been brought into force.
What hasn’t changed yet: passed but not in force
Several major reforms in the 2024 Act are not yet operational. Some still have no confirmed commencement date, while service-charge and related provisions now have a phased timetable for England.
Marriage value and the new valuation method
This is the change most leaseholders want. Marriage value reflects the additional value created when a lease is extended or the freehold is acquired. Under the existing statutory rules for flats, the landlord may be entitled to a share of this value where the remaining lease term is 80 years or less at the relevant valuation date. That share can add thousands to a lease extension.
The 2024 Act provides for marriage value to be abolished, along with a new method of calculating the premium. However, that reform has not yet commenced. Until it does, the existing valuation rules continue to apply.
The 990-year extension and the costs change
Under the Act, a lease extension will add 990 years at a peppercorn (effectively zero) ground rent. Today, a statutory extension for a flat still adds 90 years. The Act also provides for changes to the landlord’s legal and valuation costs that leaseholders must pay on statutory lease-extension and enfranchisement claims. These changes are separate from reforms to right-to-manage costs and litigation costs. For now, you still usually pay the landlord’s reasonable legal and valuation costs on top of your own.
The ban on new leasehold houses
The Act will stop most new houses in England and Wales being sold as leasehold, with some exceptions. That ban isn’t live. So, if you’re looking at a new-build house anywhere in the West Midlands, check the tenure carefully before you commit.
When will the new service charge rules start?
The Act provides for clearer service-charge demands, better information rights, annual accounts and reports, and changes to insurance and litigation costs. These protections are not yet fully operational. However, the government has now confirmed a phased timetable for England.
Under regulations made on 25 October 2026 (SI 2026 No. 1128), the changes start in four stages:
| Date | What starts in England |
|---|---|
| 6 November 2026 | Specified powers for the government to make the detailed regulations |
| 1 April 2027 | Selected service-charge information and litigation-cost provisions |
| 1 November 2027 | Further reforms to service-charge demands, accounts, reporting and insurance |
| 1 November 2028 | Remaining specified service-charge provisions for social landlords |
Some provisions apply at different times depending on the type of landlord. Additional regulations are still needed for some practical requirements, so don’t assume every new protection is available yet. This timetable applies to England. Commencement in Wales must be checked separately.
Why the valuation reforms are taking so long
The valuation reforms require further legislation and detailed rules, including prescribed capitalisation and deferment rates. The government published consultations on valuation rates and enfranchisement process costs in July 2026, with closing dates in September and October. Responses must now be considered before the next steps are settled. Freeholder groups also challenged parts of the Act in court. The government won in the High Court, but it said in September 2026 that the decision was under appeal. It has also identified implementing regulations and further legislative corrections as steps still needed. There is still no confirmed commencement date for the main lease-extension valuation reforms, and the final rules will determine how individual premiums are affected.
Still only proposed: the draft Commonhold and Leasehold Reform Bill
The draft Bill published on 27 January 2026 goes further than the 2024 Act. It proposes capping ground rents on qualifying existing residential leases at £250 a year, followed by a reduction to a peppercorn after 40 years. It also proposes banning leasehold for most new flats, subject to exceptions and transitional arrangements, making commonhold the default. Commonhold is a form of freehold ownership for individual flats, with the common parts owned and managed through a commonhold association.
The government has said the ground-rent cap could come into force in late 2028, subject to parliamentary timing. This is not a guaranteed commencement date. For now, the proposed cap does not change your ground-rent liability. And even if the Bill becomes law, your existing lease doesn’t disappear. You’d still own a leasehold flat, with extra protections.
One point people miss: under the earlier Leasehold Reform (Ground Rent) Act 2022, qualifying new long residential leases already have a peppercorn ground rent, subject to some exceptions. That rule generally applies to leases granted from 30 June 2022, and from 1 April 2023 for qualifying retirement-home leases. The proposed cap is aimed at older leases.
Should you act now or wait for leasehold reform?
There is no single answer to whether you should act now or wait. The decision depends on your remaining lease term, ground rent, likely extension premium and plans to sell or remortgage. Leases approaching 80 years need particular attention, while some owners whose leases are already below that threshold may benefit from future reforms. Get advice on your own figures rather than assuming that acting now, or waiting, will always be cheaper.
| Your situation | Do the pending reforms help yet? | Sensible move now |
|---|---|---|
| Lease just over 80 years (for example, 81 to 90) | No | Get a valuation and advice soon. Under today’s rules, marriage value is disregarded if more than 80 years remain at the valuation date, which a valid notice fixes. |
| Lease of 80 years or less | Only if marriage value is scrapped first, which has no date | Weigh today’s real cost against the risk of a longer wait. Get advice on your figures. |
| Buying a flat with a short lease | Yes, the day-one right already helps | Ask your conveyancer whether the seller should serve a valid notice and assign the benefit of the claim to you on completion. Reflect the extension arrangements and likely costs in your offer. |
| Selling a flat with a short lease | No | Ask whether starting a statutory extension claim, obtaining a valuation or agreeing an extension before sale would help the transaction. |
| Lease over 90 years | Future reforms may still affect the extension premium and ground-rent options | Review the remaining term, ground rent and any plans to sell or remortgage before deciding when to act. |
| High or rising ground rent | The cap is only proposed | Ask about options that exist now, such as a statutory extension, which reduces ground rent to a peppercorn. |
Buying or selling a leasehold flat in Birmingham: practical checks
If you’re buying, price the flat on today’s rules, not tomorrow’s headlines. Check the lease length and the ground rent terms first. Then ask for the last three years of service charge accounts and any plans for major works. Talk to your mortgage broker early too, because lenders set their own limits on lease length and ground rent.
If you’re selling, order the management pack from the managing agent as soon as you accept an offer. Waiting for the management pack can delay a leasehold sale, so requesting it early may help reduce delays. You can read more in our guide to leasehold conveyancing in Birmingham.
Questions to ask your conveyancer about leasehold reform
Take this list to your first call. A good conveyancer should answer each one clearly.
- How many years are left on the lease, and does marriage value apply to an extension today?
- Which parts of the Leasehold and Freehold Reform Act 2024 affect this flat now?
- Would it help for the seller to serve a valid lease-extension notice before completion and assign the benefit of the claim to me?
- What is the ground rent, and how and when can it rise?
- What do the last three years of service charge accounts show, and are major works planned?
- What proportion of the building’s floor area is non-residential, and does the building qualify for right to manage under the current 50% limit and other eligibility conditions?
- Will my mortgage lender accept the lease length and ground rent terms?
- What are your fees, and what other costs, such as the landlord’s fees or the management pack, sit on top?
Leasehold reform 2026: frequently asked questions
My lease has about 82 years left. Should I wait for marriage value to be scrapped?
Get specialist advice promptly rather than assuming it is safe to wait. The abolition of marriage value has no confirmed commencement date. Under the current rules, marriage value can increase the premium where the remaining term is 80 years or less at the valuation date. A valid statutory notice fixes the valuation date, so obtain a valuation and advice before deciding when to serve it.
Are leasehold flats being abolished?
Not existing ones. The draft 2026 Bill proposes banning leasehold for most new flats, subject to exceptions and transitional arrangements, making commonhold the default. It would not automatically convert existing leasehold flats to commonhold. If you own a leasehold flat today, you’ll still own it on a lease for the foreseeable future.
I keep reading the reforms are “now law”. Why can’t I use them?
Because a law can be passed without every part being switched on. The 2024 Act became law in May 2024, but most of its cost-saving parts haven’t been commenced. Until the relevant provisions and any necessary implementing regulations take effect, you cannot rely on the new rights they provide.
Does leasehold reform apply in Scotland?
No. Scotland has its own property law and doesn’t use this kind of residential leasehold. This guide covers England and Wales only.
Getting clear advice on your leasehold flat
Leasehold reform has removed the former two-year ownership requirement for certain statutory claims and widened access to right to manage. Other major changes remain pending, while England now has a phased commencement timetable for service-charge and related protections. Whether to extend your lease now or wait depends on your lease term, ground rent, likely premium and plans to sell or remortgage. Base your decision on the law currently applicable to your property, and obtain specialist advice before relying on a future saving.
If you’re considering a lease extension or a leasehold sale or purchase, check out our page for lease extension services.
Buying or selling a leasehold property? Get a fixed-fee quote from Chapter Law.
This article is general information about leasehold law in England and Wales as of November 2026. It isn’t legal advice. Commencement dates can change, so speak to a qualified conveyancer about your circumstances before you act.