If you are a leaseholder considering a lease extension, you have almost certainly heard that major changes to leasehold law are on the horizon.
For nearly a decade, successive UK governments have promised to make extending a lease cheaper, easier, and fairer. Ever since the Leasehold and Freehold Reform Act 2024 was introduced into parliament, it has felt as though full implementation must be "just around the corner"—yet leaseholders remain in limbo.
Andy Burnham announced at the Labour Party conference in September 2026 that they would introduce the Commonhold and Leasehold Reform Bill into parliament before Christmas.
However, this is an early stage in the legislative process and such a complex and contentious bill could easily take two years to make it through the parliamentary process and be implemented - as explained in more detail below.
This leaves thousands of flat owners facing a stressful dilemma: Should you proceed with a lease extension today under existing law, or hold off in the hope that reform will save you money?
Quick Summary: If your lease has between 80 and 82 years left, or if you need to sell or remortgage soon, you should almost certainly extend now. If your lease is above 82 years, the reform may make the process more expensive - rather than cheaper.
Full implementation of leasehold reform faces severe legal delays, ongoing court litigation, and extended consultations that push realistic changes to late 2028 or beyond. Waiting risks letting your lease drop below 80 years, which makes extending far more expensive under current law.
Would you like to discuss your options with an expert?
Should I wait to extend my lease? The reality of the reform timeline
If you need to sell your property, remortgage, or if your unexpired lease length is creeping dangerously close to the 80-year mark, waiting for reform may do far more harm than good.
To answer whether you should wait to extend your lease today, it helps to understand why the timeline for full leasehold reform keeps slipping.
1. "Serious Flaws" in the 2024 Act Mean Parliamentary Delays
While the Leasehold and Freehold Reform Act received Royal Assent in May 2024, receiving Royal Assent is not the same as bringing the law into force.
Crucially, Housing Minister Matthew Pennycook has acknowledged that the 2024 Act contains "serious flaws" that prevent several key valuation provisions from functioning as intended. To fix these structural defects, the Government must introduce brand-new primary legislation: the Commonhold and Leasehold Reform Bill.
Because this new Bill must undergo full parliamentary debate, committee scrutiny, and voting across both Houses, it pushes the realistic implementation of core valuation changes years down the line—likely to late 2028 or beyond.
2. Valuation Consultations Keep Being Extended
Even where primary law exists, the Government relies on public consultations to determine the mathematical rates used in lease extension calculations—specifically the prescribed deferment and capitalisation rates.
The Government’s track record for delivering swift outcomes on leasehold consultations highlights why waiting can be risky:
- The Ground Rent Consultation: A major consultation on restricting ground rents for existing leases closed in January 2024. Leaseholders spent over two years waiting for clarity and a formal government response while policy was re-evaluated.
- Valuation Rate Consultations: The critical consultation on setting prescribed valuation rates was originally scheduled to run through Summer 2025. However, this deadline has been extended to October 2026.
Once a consultation closes, civil servants must analyse thousands of responses before drafting secondary legislation. Turning consultation feedback into actionable law routinely takes 12 to 18 months, meaning finalised rates are unlikely to be enacted until well after late 2027 or 2028.
3. Ongoing Freeholder Litigation (Court of Appeal 2027)
Even if Parliament finalised the secondary legislation tomorrow, legal challenges from major freeholders and institutional landlords have thrown a significant spanner in the works.
A coalition of institutional landlords launched a Judicial Review arguing that key aspects of the 2024 Act—such as the proposed abolition of marriage value and caps on ground rent valuations—violate their property rights under Article 1 of Protocol 1 (A1P1) of the European Convention on Human Rights.
- Although the High Court dismissed the freeholders' challenge in October 2025, the freeholders were granted permission to appeal.
- The Court of Appeal has officially listed the appeal hearing for 27 April 2027 (Case Ref: CA-2025-002928).
The Government is exceedingly cautious about bringing secondary legislation into force while high-stakes Human Rights litigation remains pending. If ministers act prematurely and lose on appeal, the Treasury could face substantial compensation claims. Consequently, full reform implementation is effectively on ice until the judiciary reaches a final conclusion.
Should I wait for reform to complete my lease extension?
Deciding whether you should wait for reform to complete your lease extension comes down to your personal circumstances, your moving plans, and your current lease length.
Many leaseholders assume that waiting for reform guarantees a cheaper lease extension. For owners of leases with under 80 years remaining (where "marriage value" currently applies) or where there is a high ground rent, reform is intended to reduce costs.
However, for leases with over 80 years remaining, waiting could actually backfire:
- Under current law, statutory lease extension premiums rely on market-derived deferment rates (usually 5%). Under proposed reforms, the Secretary of State will prescribe these rates centrally.
- If the Government sets a lower deferment rate to reflect lower interest rate environments or appease institutional investors, the calculated premium for leases over 80 years will actually increase.
Decision Checklist: Should You Wait or Act Now?
When leasehold reform finally comes into effect, some flat owners who extended early may wish they had waited. Equally, many who waited will wish they had acted sooner—especially if their lease fell below 80 years in the meantime.
Already started a lease extension? If you've already started a lease extension (and invested money in the process) it would be a big gamble to withdraw from the process now in the hope it will be cheaper in the future.
If you've not yet started, here is our practical guide on what you might choose to do based on your current situation:
Lease is 80 to 82 years: Almost certainly extend now. It is highly unlikely that reforms will be implemented before your lease drops below the critical 80-year mark, where "marriage value" kicks in and makes extending significantly more expensive under current law.
Want to move or remortgage soon: Proceed now. Don't put major life plans on hold for legislation that may take years to take effect.
Lease is above 82 years: It’s a toss-up. Future reforms might lower your premium, but prescribed market rates could also make it more expensive under reform.
Ground rent is unusually high: Consider waiting. Future legislation may introduce a cap on ground rents in valuation calculations.
Lease is already below 80 years: Consider waiting. You may benefit in the future from the proposed abolition of marriage value.
Discuss your specific circumstances with an expert now
The Bottom Line
Leasehold reform is coming, but it is moving slowly through parliamentary corrections, extended consultations, and court appeals.
Putting major decisions—like selling a home or securing a mortgage—on hold for a law that may not take full effect until 2028 or later is a gamble. If you need certainty today, proceeding under the established legal framework of the Leasehold Reform, Housing and Urban Development Act 1993 remains the most reliable path forward.
Want to pay the lowest price for your lease extension?
Talk to an expert about how we can help.
