A Quick Guide to the New Leasehold Reform Bill

Mark ShiptonAdvice & tips, Landlord news, Property market news

Unless you’ve been living under a rock, you will have noticed that we are moving towards a general election (July 4th 2024). Before parliament was dissolved in order for the election to take place, MP’s passed The Leasehold Reform Bill. This is a significant piece of legislation that affects all UK homeowners and landlords who have properties with leasehold agreements. Our quick guide outlines the key facts, dates, and legal implications of the bill and provides advice on the available options for leaseholders.


The Leasehold Reform Bill marks a pivotal moment for UK homeowners and landlords who own leasehold properties. This legislation aims to provide fairer terms for leaseholders and curb some of the issues associated with traditional leasehold agreements.

Understanding Leasehold Agreements

Leasehold agreements are unique to the UK property market, allowing individuals to own the property but lease the land it stands on. This setup has led to various complications, particularly concerning ground rent and lease extensions. We have seen horror stories in the media of property owners who are effectively trapped in their properties due to ever increasing leasehold ground rents and service charges.

Overview of the Leasehold Reform Bill

Purpose of the Bill

The primary goal of the Leasehold Reform Bill is to create a more equitable system for leaseholders, addressing long-standing issues like exorbitant ground rents and restrictive lease terms.

Key Provisions

The bill introduces several key provisions, including the elimination of ground rent for new residential leases and simpler, more transparent processes for extending leases or purchasing the freehold.

Implementation Timeline

The bill’s provisions are being rolled out in phases, with specific dates for different aspects of the legislation. Full implementation is expected to be completed by 2025.

The Main Changes

The most notable change is the abolition of ground rent for new residential leases, effectively reducing the financial burden on leaseholders. The bill also simplifies the process for extending leases and purchasing the freehold.

Who is Affected

The reform primarily impacts new leaseholders and those seeking to extend their leases or purchase their freehold. Current leaseholders will also see benefits, particularly regarding lease extensions.

Legal Implications for Homeowners

Changes to Ground Rent
Under the new law, ground rent for new residential leases will be set to zero, significantly lowering costs for leaseholders.

Impact on Lease Extensions
Leaseholders will find it easier and more affordable to extend their leases, with clearer guidelines and reduced legal hurdles.

Purchasing the Freehold
The bill also makes it more straightforward for leaseholders to purchase the freehold of their property, granting them full ownership.

Options for Current Leaseholders

Extending the Lease
Current leaseholders can benefit from simplified procedures and lower costs when extending their leases under the new legislation.

Buying the Freehold
The bill makes it easier for leaseholders to buy the freehold, giving them complete ownership and control over their property.

Renegotiating Lease Terms
Leaseholders can also take advantage of opportunities to renegotiate unfavourable lease terms, improving their overall situation.

The Leasehold Reform Bill represents a major step forward for leaseholders and landlords in the UK, offering fairer terms and greater control over properties. For more info on how the new bill might effect you, contact the team at Grace Miller & Co today.