As leasehold reform continues to focus on ground rents, service charges and the cost of extending a lease, Moving Compared, the UK’s leading home moving hub helping buyers, sellers and movers compare trusted conveyancers and surveyors, warns that homeowners could make costly decisions by assuming every announced reform already applies. While some protections have taken effect, several of the most widely reported changes still require further legislation or implementation.
The £250 Ground Rent Cap
The government plans to limit ground rent to £250 a year for many older leasehold homes, although some exceptions may apply. After 40 years, the ground rent would reduce to zero. This change is not yet in force, so leaseholders must continue paying the amount set out in their current lease.
The Right To A 990-Year Extension
The Leasehold and Freehold Reform Act 2024 would allow eligible homeowners to extend their lease by 990 years. This would replace the current system, which provides an extra 50 years for houses and 90 years for flats. The change has not yet taken effect, so anyone extending a lease now must use the existing process.
The Removal Of Marriage Value
The 2024 Act also plans to remove marriage value from the cost of extending a lease or buying the freehold, however, the new system is not yet in place. Under the current rules, extending a flat lease can become more expensive once it has 80 years or less remaining. Homeowners approaching this point should seek specialist advice rather than assume it will be cheaper to wait.
Clearer Service Charge Information
The government plans to introduce stronger service charge protections in England from 2027. These are expected to include an annual report on the building and clearer, standardised forms explaining the charges. Until the changes take effect, buyers should check the latest service charge accounts and ask about any planned major works. Sellers should request the management pack as early as possible, as delays from the freeholder or managing agent can slow down the sale.
Moving Compared advises buyers to base affordability decisions on the lease as it stands today. The remaining term and current ground rent obligations should be reviewed before an offer becomes binding. Buyers should also establish whether substantial building costs are expected.
Sellers should not market a property on the assumption that future reforms will remove an existing cost or resolve a short lease. Obtaining specialist conveyancing advice at the beginning of the process can identify issues before they affect the sale or the wider property chain.
