Improved rights for Leaseholders

Posted onJuly 7, 2025

A wave of new legislation has been steadily reforming leasehold property ownership, strengthening rights for long leaseholders and moving towards the potential abolition of leaseholds altogether.

Firstly, following the Leasehold Reform (Ground Rent) Act 2022, new leases can no longer charge more than a peppercorn (a nominal amount) in annual ground rent. This means new builds, which previously often charged upwards of £250 per year in ground rent, are now prohibited from charging any rent at all.

In the subsequent Leasehold and Freehold Reform Act (LFRA) 2024, this prohibition on ground rent was extended to all new lease extensions. Additionally, the act seeks to remove marriage value, making it cheaper and simpler to extend leases, and increases the standard lease extension to 990 years. While this statute is not yet in force, Labour has pledged to implement its provisions as quickly as possible.

These changes represent a significant step forward in reforming the outdated and anti-tenant leasehold system in the UK. They also move towards fulfilling Labour's manifesto pledge to make commonhold the default ownership model for shared buildings. Commonhold is currently less widely used than leasehold but provides homeowners with a stake in the ownership of their buildings and greater control over how they are managed.

We will be closely monitoring the development of these changes over the coming years so that we can properly advise our clients on their rights when purchasing leasehold property through us.

Thank you so much for managing Auntie Barbara’s estate in the professional and compassionate manner that you have. We are very grateful to you for all your hard work, patience and understanding.
Louise
I am absolutely certain that without your great skill and tenacity, we would not have exchanged contracts. Thank you for being so positive, so helpful and cheerful when we needed it most. We will raise several glasses to you when we open some champagne at the new house!
Tom & Sylvie B
Thank you so much for your time - super clear, super helpful, and much appreciated. It remains to be seen whether / when my mother will listen to your sage advice...
Carrie Lowe