POLICY & REFORM · Last updated August 2026
2026 leasehold reform: what's actually changing
The Leasehold and Freehold Reform Act is working through implementation — here's what it means if you're buying now.
The Leasehold and Freehold Reform Act represents the biggest shake-up of leasehold law in decades. It's being implemented in stages rather than all at once, which matters if you're weighing up a leasehold purchase today against buying after reforms land.
The headline changes
- Marriage value removed: the extra cost currently triggered below 80 years remaining on a lease is being scrapped, making short-lease extensions significantly cheaper once implemented
- Ground rent reform: proposals include capping ground rent, with a long-term move toward peppercorn (effectively zero) ground rent on new leases — see our service charge and ground rent guide for how this currently affects costs
- Commonhold as the new default: the government's stated intention is for commonhold — a different ownership structure without a landlord — to become the standard for new flats, gradually phasing out leasehold for new-build sales
- Easier lease extensions generally: simplified processes and standard formulas are intended to make extending a lease faster and more predictable
Timing matters more than the headlines
Full implementation is expected to roll out gradually, with some elements reportedly not landing until 2028 or later. If you're buying a short-lease flat now hoping reforms will make extension cheaper soon, check current guidance carefully — the timeline has shifted before, and buying decisions shouldn't be based on assuming a specific date.
What this means if you're buying today
- A short lease is still a short lease under current law — today's lending restrictions and marriage value rules apply until reform is actually in force for your specific situation
- Don't assume you can time a purchase to land just before reform kicks in — implementation dates have moved before and may move again
- If you're extending a lease as part of a purchase, ask your solicitor for the current position specifically, not a general summary of the reforms
- Ground rent clauses in older leases (particularly escalating ones) remain a real cost and mortgage-eligibility factor until reform actually changes the underlying lease, not just the law
See today's numbers, not a future estimate
Homabu's calculator reflects current lending criteria — check back as reforms land and rules change.
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