Leasehold Rights
Written in plain language for general understanding. This is educational content, not legal advice. Based on UK Acts of Parliament, statutory instruments, and official guidance.
UK National Law
What is this right?
If you own a leasehold flat or house, you own the property for the length of the lease but not the land it sits on — that belongs to the freeholder. Major reforms are transforming leasehold rights in England and Wales:
- Lease extension: The Leasehold and Freehold Reform Act 2024 allows extensions of 990 years (up from 90 for flats, 50 for houses) at a peppercorn ground rent. The 2-year ownership requirement has been removed — you can apply as soon as you buy.
- Marriage value abolished: Previously, if your lease was under 80 years, you had to pay the freeholder 50% of the property value increase. This extra cost is now gone. However, the new calculation rules are not yet in force — expected late 2026 or later.
- Ground rent: New leases granted since 30 June 2022 must have a peppercorn (zero) ground rent. For existing leases, proposed reforms would cap ground rent at £250/year, reducing to peppercorn after 40 years.
- Right to Manage: Leaseholders in a block can take over management from the freeholder by forming an RTM company — no need to prove mismanagement.
- Service charge transparency: You have the right to see a clear breakdown of costs and inspect invoices. Reforms are strengthening requirements and banning hidden commissions.
When does it apply?
- You are a leaseholder — typically a flat owner, but also some house owners.
- Your lease is long (originally granted for more than 21 years).
- Service charges must be reasonable and for costs actually incurred. Major works (over £250 per leaseholder) require a section 20 consultation.
- You can challenge unreasonable service charges at the First-tier Tribunal (Property Chamber) — relatively low cost and you generally don't need a lawyer.
- Scotland note: Leasehold is extremely rare in Scotland — most property is held under outright ownership following the Abolition of Feudal Tenure (Scotland) Act 2000.
What should you do?
- Check your lease length. If it's getting close to 80 years, seek advice on extending — even though marriage value is abolished in the new law, the new rules are not yet in force, so under current rules you would still pay it.
- For service charge disputes, request a summary of costs and inspect accounts. If charges seem unreasonable, apply to the First-tier Tribunal.
- For Right to Manage, contact the Leasehold Advisory Service (LEASE) at lease-advice.org for free guidance.
- For lease extensions, get an independent valuation from a surveyor experienced in leasehold matters.
What should you NOT do?
- Don't let your lease drop below 80 years if avoidable — the new rules abolishing marriage value are not yet in force, so under current rules the cost still jumps significantly below 80 years.
- Don't sign a lease extension offered by your freeholder without independent legal advice — informal extensions may not give you the best terms.
- Don't ignore correspondence from the freeholder — failing to respond to a section 20 consultation limits your ability to challenge costs later.
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