If you own a leasehold property, this year is an important time to review your position.
The UK’s leasehold system has long faced criticism for unfair ground rents, rising service charges, and limited control for homeowners.
A number of recent, well-publicised cases have involved freehold portfolios being acquired, followed by correspondence to long leaseholders in terms that have caused concern and uncertainty.
Earlier legislation began addressing these concerns, however the latest King's Speech confirmed the Commonhold and Leasehold Reform Bill will be introduced in this parliamentary session.
For many leaseholders, this will be the first time reforms bring visible savings, increased control, and a choice of how their homes are owned and managed.
Arabella Greenslade-Watts from Wake Smith Solicitors’ conveyancing team looks at the issue and what property owners should consider.
The Commonhold and Leasehold Reform Bill includes:
- Banning new leasehold flats (not on existing leasehold blocks) - instead of leasehold, new flats will generally be sold as commonhold, marking a major shift away from the traditional leasehold model helping prevent future buyers from inheriting the same problems faced by existing leaseholders.
- Banning the granting of new leasehold houses (with some exceptions).
- Capping ground rents at £250 per annum on existing leases - reducing to a peppercorn rent (i.e. £0) after 40 years, bringing relief to leaseholders facing escalating ground rents, particularly those caught by doubling clauses making properties harder to sell or remortgage.
- Ending forfeiture – where leaseholders can lose their property for debts as low as £350.
- Making it easier and cheaper to extend leases or buy the freehold. The removal of the requirement to pay marriage value should significantly reduce the cost of extending a lease. Marriage value refers to the increase in the market value of a property when a leaseholder extends their lease or buys the freehold. For leaseholders with shorter leases, the result may be large savings and encourage earlier action rather than waiting until a lease becomes problematic.
- Ending ‘fleecehold’ - where someone owns the freehold but the property is located on a privately managed estate (common with new-build developments). These properties are often liable for additional fees for the upkeep of communal areas. Changes aim to improve transparency, limit unreasonable charges, and give homeowners greater rights when dealing with estate management companies.
The Bill, published in January 2026, represents the next major legal step in the Government’s longer-term plans for ending unfair leasehold practices and accelerating the transition to alternative ownership models.
Leasehold property owners should:
- Check whether their ground rent will be affected by the proposed cap
- Consider whether a lease extension or freehold purchase is now more affordable
- Explore Right to Manage or commonhold conversion with other residents
Arabella said: “Although not yet law, the draft bill offers clear indication of the direction the Government is taking and allows leaseholders, landlords and developers to start planning for what’s coming.
“Leasehold reform in 2026 represents a large shift in the balance of power towards homeowners. Whilst changes will take time to be fully implemented, this is a move towards less unfair costs, stronger rights, and a gradual move away from leasehold altogether.”
For advice on these matters contact us online here, or call us on 0114 266 6660