A comprehensive breakdown of the Leasehold and Freehold Reform Act 2024 — what changed, what is being phased in, and how the new rules affect your lease extension premium.
The Leasehold and Freehold Reform Act 2024, which received Royal Assent in May 2024, is the most significant reform to leasehold law in England and Wales for over 30 years. For millions of leaseholders, the changes mean lower future extension costs and greater transparency — though the timing of most provisions depends on secondary legislation.
Flat owners previously received a 90-year statutory extension. The 2024 Act extends this to 990 years — effectively perpetual ownership. This removes the need to extend repeatedly throughout a lifetime of property ownership.
The Act proposes to abolish marriage value — the uplift payable when a lease falls below 80 years. This could save leaseholders tens of thousands of pounds. However, it requires secondary legislation and is not yet in force.
Not all provisions of the 2024 Act are immediately in force. Several require Statutory Instruments before they become law. Check lease-advice.org regularly for the current status of each provision before making financial decisions based on anticipated savings.
An independent review of the 5% deferment rate was commissioned. New prescribed rates are expected to reduce premiums when confirmed — but the current 5% rate still applies in all calculations today.
The requirement to have owned your property for two years before extending your lease has been removed. You can now trigger an extension from the date you complete your purchase — particularly valuable for buyers of properties with short leases.
Freeholders must now provide clearer, itemised service charge breakdowns. Leaseholders have enhanced rights to challenge unreasonable charges at the First-tier Tribunal.
The Right to Manage — allowing leaseholders to take over building management without buying the freehold — is now available to more buildings and has been simplified under the 2024 Act.
We'll email you when 2024 Act provisions come into force and when new premium rates are confirmed.
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We'll notify you when 2024 Act provisions come into force, new rates are published, and when landmark Tribunal decisions affect your premium.