Three big changes to leasehold: What they mean for leaseholders
There’s been plenty of talk around leasehold reform in the UK lately, and for good reason. After years of campaigning and consultation, the Leasehold and Freehold Reform Act has now become law. While not everything has come into play yet, 2025 is shaping up to be a year of real progress for leaseholders.
At Prime Choice, we’ve been following this closely. As your local Rushden letting agents, we know how much these changes can impact your property plans. Here’s a clear look at three of the biggest changes expected this year and what they might mean for you.
1. Leaseholders can now act sooner
Previously, leaseholders had to wait two years after buying a leasehold property before they could extend their lease or purchase the freehold. That waiting period has now been scrapped, giving leaseholders the right to act straightaway.
There is still one thing to keep in mind: although you can begin the process immediately, you’ll need to wait for your property purchase to be registered with the Land Registry before serving the notice. Even so, this change gives leaseholders more control and flexibility from the outset.
2. Lease extensions now last 990 years, with zero ground rent
One of the major changes in the leasehold reform is the length of lease extensions. The new rules mean leaseholders can now extend for 990 years. That’s a significant step up from the previous 90 years for flats and 50 years for houses.
Even better, ground rent will be reduced to zero when you extend your lease under the new legislation. This helps leaseholders avoid escalating costs and can make a big difference to the long-term value and marketability of the property.
If your lease is running low or you're considering selling in the future, this is a great time to consider your options.
3. More rights in mixed-use buildings
The Right to Manage has also been improved. Before, if a building had more than 25% commercial space, like shops or offices, leaseholders couldn’t apply to take over the management. That threshold has now increased to 50%, meaning many more leaseholders in mixed-use buildings will now qualify.
Another positive update: leaseholders no longer have to pay their freeholder’s legal fees when making a Right to Manage claim. This makes it more affordable to gain more say in how your building is run.
Other updates on the way
While the recent changes are already making a difference for leaseholders, more updates are in the pipeline. The government is expected to publish a draft Leasehold and commonhold Reform Bill later in 2025, with further scrutiny and consultation planned.
One of the most talked-about proposals is a potential ban on the sale of new leasehold flats, this would mark a major shift, aiming to make commonhold the default form of ownership for future developments. Alongside this, work is continuing to modernise the commonhold system, which allows flat owners to jointly own and manage their building without the involvement of a landlord.
What should leaseholders do now?
With some parts of the reform already active and others still to come, it’s good time to take stock. Here’s what we recommend:
Check your lease
If the term is starting to run down or you’re unsure about your current position, a quick review could help you plan ahead.
Buying or selling?
These changes may affect your property’s value or saleability. Getting advice now could make all the difference.
Stay updated
The landscape is shifting. If you’re unsure how these new rules apply to your situation, we’re here to talk things through.
At Prime Choice, we’ve been supporting landlords and homeowners across East Northants since 1992. Whether you’re new to the market or experienced, our team is here with clear, practical advice and a service you can rely on. If you’ve got questions about lease extension, the new rules for landlords, contact your local experts today.
