Leasehold Reform Bill Moves Forward:

What It Means for Homeowners and Legal Practitioners
 

The Leasehold and Freehold Reform Bill, part of the UK Government’s long-promised overhaul of the leasehold system in England and Wales, has passed its second reading in the House of Lords—marking another key step toward becoming law. The reforms could bring major changes for millions of leaseholders and present significant considerations for solicitors advising in property and conveyancing.

Key Proposed Changes

Amongst the most notable provisions in the draft legislation are:

  • 📌 Standard lease extension term increased from 90 years to 990 years for both flats and houses.

  • 📌 Ground rents abolished for new lease extensions, aligning with the Leasehold Reform (Ground Rent) Act 2022.

  • 📌 Simplified and more transparent enfranchisement process, including the right for leaseholders to collectively buy the freehold of their building.

  • 📌 Removal of the two-year ownership requirement before leaseholders can extend their lease or buy their freehold.

These reforms aim to make leasehold ownership fairer and more transparent, addressing long-standing criticisms around escalating ground rents, unfair lease terms, and opaque service charges.

Implications for Solicitors

If enacted, the bill would significantly impact the legal landscape for residential property transactions. Solicitors will need to review how leasehold advice is given, particularly during conveyancing, estate planning, and dispute resolution.

The changes will also place new responsibilities on freeholders and managing agents, and solicitors acting for landlords may need to reassess their clients’ long-term asset strategies.

Next Steps

The Bill is expected to undergo further scrutiny in the Lords before moving to the final stages of approval. Although the timeline for royal assent is not yet confirmed, implementation could occur as early as late 2025.

What Clients Should Know

Legal practitioners are encouraged to proactively inform clients—particularly leaseholders considering extending their leases or buying the freehold—about the potential impact of the Bill. In many cases, waiting for the new regime could lead to significant financial benefit.

For advice on leasehold issues or property matters, please contact our team of experienced residential property solicitors.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.