Buying a Leasehold Flat? Why the Lease Extension Rules Are Still in Limbo

"Lease extensions are about to get much cheaper." If you've been looking at flats, you've probably heard someone say this. And it's true, in theory. The law that makes it happen was passed back in 2024.

The trouble is, it still hasn't been switched on, and nobody can say for certain when it will be. If you're buying a flat, selling one, or sitting on a lease that's starting to look a bit short, that uncertainty matters. Here's why things are stuck, and how to make a sensible decision in the meantime.

What's been promised

The Leasehold and Freehold Reform Act 2024 sets out a new way of calculating what you pay to extend your lease or buy your freehold. The headline changes are:

• No more marriage value. At the moment, once a lease drops below 80 years, you have to pay the landlord half of the "marriage value", which is the extra value a longer lease adds to your flat. This can make extending a short lease very expensive. The Act scraps it.
• 990-year extensions, rather than the current 90 extra years for flats, with ground rent reduced to zero
• Ground rent counts for less. When working out the price, ground rent will be capped at 0.1% of the freehold value, which helps people with high or escalating ground rents
• Each side pays its own costs. In most cases, you'd no longer have to pay your landlord's legal and valuation fees as well as your own
• Fixed valuation rates. The government will set the key rates used in the calculation, which should mean fewer arguments over price

Put together, for many people (especially those with shorter leases), that's a big potential saving.

So why isn't it happening yet?

Three things are holding it up:

• The Act needs fixing first. There are known flaws in how the 2024 Act was drafted. The housing minister has said the new valuation rules can't be switched on until those are fixed through new primary legislation, expected to come through the forthcoming Commonhold and Leasehold Reform Bill.
• The valuation rates are still being decided. The government only launched its consultation on the rates used to calculate lease extension prices on 15 July 2026. That consultation closed on 21 October 2026, so we're still waiting to hear the outcome. These rates will make a real difference to what people end up paying.
• There's an ongoing legal challenge. A group of large freeholders challenged the reforms in court. They lost in the High Court in October 2025, but the Court of Appeal gave them permission to appeal on 1 April 2026, and no hearing date has been published yet.

Add it all up and there's no firm date for when cheaper lease extensions will actually arrive. For the wider picture, see our catch-up on where leasehold reform has got to.

Should you extend now or wait?

There's no one-size-fits-all answer, but here's a rough rule of thumb based on how long is left on the lease:

• Around 80 to 85 years: usually worth extending now, before it drops below 80 and marriage value kicks in. The reforms may not arrive in time to help.
• Below 80 years: waiting could save money once marriage value goes, but there's no date, and the lease keeps shortening, which can affect mortgages and sales.
• Comfortably above 85 years: less urgent. Many people can afford to wait and see what happens.
• Need to sell or remortgage soon: extending now is often the practical choice, as a short lease can put off buyers and lenders.

The reforms might make extensions cheaper for most people, but not necessarily for everyone, especially if your lease is long and your ground rent is low. It's always worth getting advice on your own lease before you decide.

Buying a flat with a shorter lease? A few tips

• Check what your lender will accept. Many lenders have a minimum unexpired lease term, and a short lease can affect whether you can get a mortgage at all.
• Ask the seller to start the extension. A seller can serve the formal notice to extend and assign the benefit of it to you on completion, together with the lease. That gets the ball rolling now, rather than you waiting.
• Factor the cost into your offer. Get a valuation of what the extension is likely to cost under the current rules, and negotiate accordingly. Don't bank on the reforms bailing you out.
• Remember you don't have to wait two years. Since 31 January 2025, you can start a statutory lease extension as soon as you own the flat (once your purchase is registered).
• Look at the service charges too. A short lease is only one part of the picture. Our piece on service charge transparency explains what's changing there.

Our guide to freehold vs leasehold covers the other things to check before you buy a flat, and our fees page sets out what we charge for a leasehold purchase. We act for buyers and sellers anywhere in England and Wales through online conveyancing.

If you're weighing up a flat with a shorter lease, send us a message and we'll help you work out what it means for you.

Sources

• Leasehold Reform, Housing and Urban Development Act 1993, s.43 (assigning the benefit of a notice with the lease) and s.56 (the current 90-year extension)
• Leasehold and Freehold Reform Act 2024 and SI 2025/57 (two-year rule removed from 31 January 2025)
• MHCLG, Stronger leasehold protections in crackdown on hidden fees (15 July 2026), which launched the valuation rates consultation
• HomeOwners Alliance, Leasehold reform latest news 2026 (updated 21 October 2026)

This reflects the position on 3 November 2026. Valuing a lease extension depends on the lease and the flat, so take advice from a specialist valuer and a lawyer before you serve a notice.