Lease Extension UK 2026: Your Rights Under the Leasehold and Freehold Reform Act

Gerard Maymó
June 17, 2026
8 min read
Extensión de Arrendamiento en Reino Unido 2026: Derechos Bajo la Nueva Ley de Reforma
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The Leasehold and Freehold Reform Act 2024 transformed lease extension rights in England and Wales: standard 990-year terms, zero ground rent, and new valuation rules. What leaseholders need to know now.

✓ Citing current regulationsSee detailed guide below ↓

Lease Extension UK 2026: Your Rights Under the Leasehold and Freehold Reform Act

The Leasehold and Freehold Reform Act 2024 (LRFA) is the most significant change to leasehold law in England and Wales since the Commonhold and Leasehold Reform Act 2002. For the 4.98 million leasehold properties in England alone, the Act creates new rights to extend leases on much better terms — but the implementation timeline and eligibility rules matter enormously.

990 years

"Standard lease extension term under the Leasehold and Freehold Reform Act 2024 — replacing the previous 90-year extension. Zero ground rent included as standard."

— Leasehold and Freehold Reform Act 2024, Part 1

What is a lease extension? A statutory process by which a leaseholder can extend their lease term and/or reduce the ground rent, using rights granted by Parliament rather than negotiating commercially with the freeholder. The LRFA 2024 significantly improved these rights by extending the standard term from 90 to 990 years, mandating zero ground rent, and making valuation fairer for leaseholders.

What the 2024 Act changed: before vs after

Aspect Before LRFA 2024 After LRFA 2024
Extension term90 years added to remaining term990 years from original term
Ground rent after extensionPeppercorn (effectively zero)Zero — legally mandated
Eligibility (ownership period)Must have owned 2 yearsNo minimum ownership period
Marriage valuePayable on leases under 80 yearsAbolished
Freeholder's legal costsLeaseholder pays freeholder's costsEach party pays own costs

Eligibility criteria under the LRFA 2024

✓

You hold a long lease (over 21 years originally granted)

This covers the vast majority of residential flats sold under long leases in England and Wales. Commercial leases are excluded.

✓

The property is a flat or house in England or Wales

Scotland and Northern Ireland have different leasehold frameworks. The LRFA applies to England and Wales only.

✓

No minimum ownership period (LRFA 2024 removed the 2-year rule)

Previously you had to own the property for 2 years before you could apply for a statutory lease extension. This requirement was abolished.

The lease extension process (step by step)

1

Instruct a RICS-registered surveyor for a lease extension valuation

The premium you pay for the extension is calculated using a statutory formula. A surveyor experienced in lease extensions will value the premium and advise on a negotiation strategy. Typical cost: £500–£1,500.

2

Instruct a solicitor to serve a Section 42 notice

The S.42 Tenant's Notice formally triggers the statutory process. It must contain the proposed premium and comply with strict drafting requirements. An invalid notice can be fatal to your claim. Solicitor fees: £1,000–£2,500 typically.

3

Freeholder serves Counter-Notice (within 2 months)

The freeholder must respond within 2 months admitting or denying the right to extend, and proposing their own premium if they disagree with yours.

4

Negotiate premium — or apply to the Tribunal

Most cases settle without a Tribunal hearing. If you can't agree on the premium, either party can apply to the First-tier Tribunal (Property Chamber) to determine the fair value.

5

Complete the new lease (within 6 months of Tribunal or agreement)

The new lease (990 years, zero ground rent) is executed and registered at HMLR. Your solicitor handles the registration. SDLT may be payable on the premium.

❓ "My lease has 74 years left. Is it urgent to extend now under the new Act?"

✅ "Yes, acting before you hit 80 years remaining is advisable even under the LRFA 2024. Although marriage value has been abolished (reducing the premium for short leases), at 74 years many mortgage lenders require a minimum unexpired term of 70–85 years — so delaying risks limiting your mortgage and resale options. With the LRFA 2024, you can serve a S.42 notice immediately (no 2-year ownership requirement), and will receive a 990-year extension at zero ground rent."

⏱ 2 seconds · 📄 LRFA 2024 Part 1 + CML Lenders Handbook · 🚫 0 hallucinations

Questions about your lease or service charges?

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Published: June 2026 · Sources: Leasehold and Freehold Reform Act 2024 (legislation.gov.uk); Leasehold Reform, Housing and Urban Development Act 1993; RICS Leasehold Reform guidance 2025; HMLR Practice Guide 27 · Author: Gerard Maymó, CEO Igera Solutions · IgeraFincas UK

#lease extension UK 2026#leasehold reform act 2024#LRFA lease extension#990 year lease extension#Section 42 notice#lease extension costs UK#zero ground rent lease#lease extension valuation UK#extend leasehold flat England

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