Should I wait for lease extension laws to change?

Leaseholders are increasingly hearing that the law on lease extensions is changing, and many are unsure whether they should act now or wait. The position varies for each situation. While significant reform legislation has been introduced, and further reforms are proposed, not all changes are in force, and existing statutory rights remain fully available.

This article explains what has changed, what may change in future, and how leaseholders should approach decisions in the meantime.

The current law on lease extensions

At present, leaseholders of flats can extend their lease using the statutory process under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993).

Under the current statutory process, qualifying leaseholders are entitled to an additional 90 years added to their existing lease’s remaining term, with ground rent reduced to a peppercorn (effectively £0).

What is the Leasehold and Freehold Reform Act 2024?

The Leasehold and Freehold Reform Act 2024 (LFRA 2024) is a wide-ranging piece of legislation intended to reform various aspects of leasehold ownership, including lease extensions.

It reflects a policy intention to make lease extensions simpler, cheaper and more transparent. However, it is important to distinguish between provisions that are already in force and those that require further commencement or secondary legislation.

What about the draft Commonhold and Leasehold Reform Bill? 

On 27 January 2026 the Government also published a draft Commonhold and Leasehold Reform Bill for pre‑legislative consideration, alongside explanatory material and a consultation on moving to “commonhold” as the default method of flat ownership and proposing to restrict the creation of new flats with the current leasehold system, as well as proposing to cap ground rents in existing leases.  

At this stage, the proposals are not law. They indicate the direction of travel for future reform, but they do not change the legal position as at the time of the Bill, and such changes were not (at the time of first publishing the draft Bill) envisaged until late 2028, at the earliest.  

See our Blog on Proposed Commonhold and Leasehold Reforms – Practical Impact for Flat Owners posted at the time of the initial draft Bill, for further information. The subject of Leasehold Reform continues to change and develop; be sure to check with our expert leasehold reform lawyers for the latest news.

What has already changed?

One significant change to lease extension law is already in force: the removal of the qualifying two-year ownership requirement.

Leaseholders no longer need to have owned their flat for two years before starting a statutory lease extension claim. This allows new owners to act immediately where their lease is short.

What has not changed yet?

Several widely discussed reforms have not yet been implemented. These include proposals for much longer lease extensions (such as 990-year extensions), limits on the recoverability of the landlord’s costs (currently payable by the flat owner) and changes to the valuation framework used to calculate premiums (purchase prices) payable to the landlord to purchase the lease extension. Until these provisions are commenced, the existing statutory framework continues to apply under the LRHUDA 1993.  

Should leaseholders wait for the law to change?

Whether it makes sense to wait to see if you will benefit from future changes depends on individual circumstances. Key factors include the remaining lease length, proximity to the 80-year threshold, and your short-term or long-term plans to sell or remortgage.

For leaseholders with shorter leases, delaying action can increase cost and risk under the current law.

When will the full reforms be in force? 

At the time of writing, there is no confirmed timetable for when the remaining lease extension reforms will actually come into force.  

Many of the headline proposals in the LFRA 2024 require further consultation and secondary legislation to be passed before they can take effect.  

The content of the Government’s draft Commonhold and Leasehold Reform Bill are, at the time of publishing, proposals, not law.  

While the government has indicated a clear policy direction for reform, the timing of implementation will depend on further legislative steps and practical considerations. As a result, leaseholders should be cautious about delaying action in expectation of imminent change, particularly where a lease is already short or approaching key thresholds.  See our guidance Do I need to extend my lease?  for further information.  

A balanced approach

Current statutory lease extensions are well-understood and provide certainty and protection. Future reforms may be beneficial, but their timing and practical impact remain uncertain.

Seek expert advice

The law on lease extensions is changing, but not all changes are in force yet. Leaseholders should take advice based on the law as it stands today, while remaining alert to future reforms.  We can discuss the changes and current law with you to help you come to a decision.