Leasehold and Freehold Reform Act 2024 — What Changed for Lease Extensions

Royal Assent: May 2024

The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024, making it the most significant overhaul of leasehold law in England and Wales since the Commonhold and Leasehold Reform Act 2002. However, the Act is being implemented in stages — not all provisions are yet in force, and secondary legislation is still being drafted for some of the most consequential changes.

Key Changes That Affect Lease Extensions

1. Marriage Value Abolished

The most financially significant change for leaseholders. Marriage value — the freeholder's share of the uplift in property value created by the extension — has been abolished for residential leases. Previously, leaseholders with fewer than 80 years remaining on their lease had to pay 50% of the marriage value as part of the premium. On a £400,000 flat with 72 years remaining, this could amount to £30,000 or more. The abolition applies to both the statutory (1993 Act) and informal extension routes.

2. Standard Extension Term Extended to 990 Years

Under the old regime, leaseholders extending under the Leasehold Reform, Housing and Urban Development Act 1993 received 90 years added to the remaining term — so a flat with 75 years left would become a 165-year lease. The 2024 Act increases the standard extension to **990 years**, giving leaseholders a virtually perpetual interest in their property.

3. Two-Year Ownership Requirement Removed

Previously, you had to have owned your flat for at least two years before you could serve a Section 42 notice to extend your lease. The 2024 Act removes this requirement. You can now seek an extension from the moment you complete your purchase.

4. Ground Rent Reduced to Peppercorn

On extension, the ground rent is reduced to a peppercorn (effectively zero) for the full 990-year term. This applies regardless of what the existing ground rent is.

What Is Not Yet in Force

As of early 2026, some provisions of the Act — particularly those relating to new valuation methodology and online tribunal processes — are still subject to secondary legislation. The Government has committed to implementation but timelines for individual provisions vary. It is essential to check the current commencement position with your solicitor before taking action.

The 1993 Act Still Applies

The procedural framework for statutory lease extensions — the Section 42 notice, counter-notice, and tribunal route — remains the Leasehold Reform, Housing and Urban Development Act 1993 as amended. The 2024 Act changes the financial terms and removes barriers to access, but the formal process itself is largely unchanged.

What Should Leaseholders Do Now?

If your lease has fewer than 90 years remaining, you should be actively planning an extension. Use our [Lease Extension Calculator](/lease-extension-calculator) to estimate your premium under the current reformed valuation rules, then instruct a RICS surveyor to confirm the figure before serving notice.

Even with marriage value abolished, acting sooner is better. Lenders remain cautious about short leases, and the administrative process from initial notice to completion typically takes 6–18 months.