Leasehold and freehold: what you own, and 2024 reforms

The two kinds of ownership

GOV.UK describes leasehold this way: “You only own a leasehold property for a fixed period of time”, under a lease from the landlord, called the freeholder. Most flats are leasehold, and houses can be too, usually when bought through shared ownership. In Northern Ireland the Department of Finance glossary defines freehold (“fee simple”) as land held forever, not restricted to a term of years as in a lease.

Always ask your conveyancer to explain the lease: its remaining length, ground rent, service charges and any restrictions. See service charges and ground rent and conveyancing explained.

Nation by nation

Ground rent

New leases (England and Wales). Under the Leasehold Reform (Ground Rent) Act 2022, from 30 June 2022 most new qualifying long residential leases cannot charge more than one peppercorn a year in ground rent. For retirement properties the Act does not take effect before 1 April 2023. Exceptions include community-led housing, certain financial products and business leases. For existing leaseholders who agree a voluntary lease extension after the Act, the ground rent on the extended portion is a peppercorn. Statutory lease extensions are unchanged.

Existing leases. A cap of £250 a year on older leases, falling to a peppercorn after 40 years, is a government proposal in a draft Commonhold and Leasehold Reform Bill. I did not find it in force: treat it as an intention.

Northern Ireland. Homeowners whose property is held under a lease or a fee farm grant can redeem (buy out) their ground rent: you pay nine times the annual ground rent, plus the Land Registry fee of £50, plus any unpaid rent. Owners of flats and apartments cannot (nidirect). Example, as a formula: buyout = 9 x annual ground rent + fee + any arrears.

The Leasehold and Freehold Reform Act 2024: what is in force

The Act received Royal Assent on 24 May 2024. Under section 124, most provisions come into force on dates the Secretary of State appoints by regulations. The commencement regulations I read bring into force:

• 31 October 2024: sections 114 to 116 (remediation of defects, remediation orders, remediation contribution orders) and section 120 as it relates to the Building Safety Act 2022 (SI 2024/1018);
• 31 January 2025: section 27, which removes the two-year qualifying period before a leaseholder can extend a lease or buy the freehold (SI 2025/57);
• 3 March 2025: sections 49 to 52 (right to manage: the non-residential limit, costs, compliance, and tribunal matters), and section 64 so far as it concerns the right to manage (SI 2025/131).

Not shown as in force. GOV.UK’s explainer, updated 7 September 2026, describes the 990-year lease extension, the removal of marriage value and the 0.1% limit on assessed ground rent as what the Act “will make” possible, and says the government intends to bring them into force as soon as possible through regulations and a forthcoming Bill. It adds that some enfranchisement reforms are under appeal. Other measures announced when the Act passed, such as the ban on selling new leasehold houses, standardised service charge bills and the ban on buildings insurance commissions, were not in the commencement regulations I read. Check the “changes to legislation” tab on legislation.gov.uk for any later regulations.

Which professional to consult

A conveyancer reads the lease and reports its terms. A valuer values a lease extension or freehold purchase. A surveyor checks the building.