The Ministry of Housing, Communities and Local Government has made a commencement order bringing into force the enfranchisement and lease extension provisions of the Leasehold and Freehold Reform Act 2024 from 1 November 2026. The key changes for leaseholders: (1) Lease extension term — the statutory term for a lease extension is increased from 90 years to 990 years for both houses and flats, with zero ground rent after extension. (2) Ground rent cap — the "marriage value" premium (previously payable on leases with fewer than 80 years remaining) is abolished, making lease extensions significantly cheaper for many leaseholders. (3) Two-year ownership rule — the requirement to own a property for two years before exercising enfranchisement rights is removed; leaseholders can now act immediately after purchase. (4) Collective enfranchisement participation rate — reduced from 50% to 50% of qualifying leaseholders remaining, while the qualifying share required falls to one-third of flats.
These changes do not affect enfranchisement valuations currently in progress under the old law — those already commenced must be completed under the previous regime. The First-tier Tribunal (Property Chamber) hears disputes about the valuation premium; the Leasehold Advisory Service (LEASE) provides free guidance. See the earlier leasehold reform news and the leasehold reform article for background.