The Leasehold & Freehold Reform Act 2024
Flat Owners Win the Battle — But Not Yet the War
The Leasehold & Freehold Reform Act 2024 marks one of the most significant shifts in leasehold law for decades. Following the High Court ruling on 24 October 2025, where freeholders lost their legal challenge, the path has been cleared for major reforms that could dramatically reduce the cost of extending your lease.
But while the headlines look positive, the journey is far from over. Appeals, government delays, and potential changes to valuation rates mean leaseholders should remain cautious.
What the Current Act Provides
The 2024 Act already confirms several important benefits for flat owners:
- 990 Year Lease Extensions
A major improvement on the current 90-year statutory extension under the 1993 Act. - No 2-Year Ownership Requirement
You can now make a statutory claim immediately after purchasing your flat. - Freeholders Must Pay Their Own Costs
Except in very limited circumstances, freeholders will no longer be able to recover their legal and valuation fees from you. - Ability to Buy Out High or Escalating Ground Rents
Ground rent liabilities can be capped and bought out at a reduced premium.
What Has NOT Been Agreed Yet
Despite progress, several critical issues remain unresolved:
- No Final Agreement on Removing Marriage Value
The key question — whether flats with under 80 years remaining will be free from marriage value — is still not settled in law. - Government-Set Valuation Rates Still Unknown
The government plans to set deferment and capitalisation rates. Depending on how these are set, lease extensions could become cheaper… or significantly more expensive.
Why Leaseholders Should Stay Cautious
Even though the High Court decision was a major victory, leaseholders should be aware of three potential roadblocks ahead:
- Freeholder Appeals May Continue
Freeholders can still seek permission to appeal to the Court of Appeal and even the Supreme Court, risking delays that could last months or years.
- The Government May Delay Implementation Until 2028 or 2029
The current Labour government has already indicated that substantial leasehold reforms may not come into force until 2028 or 2029—potentially pushing the issue to the next government.
- Government-Controlled Valuation Rates May Increase Premiums
The most significant risk is the government’s proposal to set the deferment and capitalisation rates.
A 1–2% reduction in the deferment rate could mean:
- Leaseholders pay more for their extension than under the existing 1993 Act
- Freeholders regain the financial value of marriage value indirectly
- Costs increase even for leases over 80 years
This means the reforms could still end up costing you more, depending on how the government responds to lobbying from corporate freeholders.
What This Means for You
If you are a flat owner thinking about extending your lease:
- The reforms may save you money in the future
- But they may also increase costs depending on the final legislation
- Appeals and political delays mean the situation is still uncertain
Getting expert advice now is essential to avoid costly mistakes.
Need Clear, Affordable Lease Extension Advice?
If you are a flat owner within London or the M25, we can guide you through the best strategy under both the current law and the proposed reforms.
Contact David Goldstone at our Head Office (Battersea Power Station):
📞 020 4534 8950
📧 david@capitalleasehold.co.uk
With over 25 years’ experience in lease extension and enfranchisement valuations, we provide fast, specialist advice at a reasonable cost.