What do you need to know about the Leasehold & Freehold Reform Act 2024?

The Government has promised to make leasehold fairer and simpler through the Leasehold and Freehold Reform Act 2024 (LAFRA 2024). This law aims to reduce costs for leaseholders, make it easier to extend leases or buy the freehold, and improve transparency around charges payable under leases.

But while the Act is now law, not all parts of it are in force yet. Some important reforms are active, but many of the headline changes are still waiting for the green light – partly because of ongoing litigation.

What is in force?

• Abolition of the two-year ownership rule – You no longer have to own your flat or house for two years before starting a lease extension or freehold claim. This change came into effect in January 2025.
• Right to Manage (RTM) made easier – Since March 2025, more mixed-use buildings qualify (shops and offices can now make up to 50% of the floor area, instead of 25%). Leaseholders taking over management no longer automatically pay landlords’ legal costs, and landlords’ voting rights in RTM companies have been reduced.

These changes are already making it quicker and cheaper for leaseholders to act.

What is still on hold?

• Cheaper lease extensions – The government’s plan to scrap “marriage value” and simplify how premiums are calculated hasn’t been switched on yet.
• 990-year lease extensions – Still not available; the current 90-year extension remains in place.
• Collective enfranchisement reforms – The new, easier process for groups of leaseholders to buy their freehold is not yet live.
• Cost protections – Measures to restrict landlords from passing on large legal or insurance costs are also awaiting commencement.

Why the delay?

A group of large freeholders challenged parts of LAFRA in the courts. The case was heard in July 2025, and the judgment has not yet been handed down. Until that decision is made, the Government is holding back from “switching on” the more controversial parts of the Act.

What does this mean for you?

• If you’re thinking about a lease extension, you can act now under the current rules, with the benefit of the no-wait rule.
• If you and your neighbours are planning to buy your freehold, the law will eventually make it easier – but the new system is not yet active.
• It’s worth taking advice before deciding whether to proceed now or wait for further changes.

LAFRA 2024 is a big step forward, but the full reforms are not here yet. Leaseholders do have some new rights already, but the biggest savings on lease extensions and collective enfranchisement may depend on the court’s ruling in the coming months.

If you have questions or concerns about the Leasehold & Freehold Reform Act 2024, please contact Katie Cohen.