Two-year ownership rule for lease extension abolished

The two-year ownership rule for lease extensions and freehold purchases was removed from 31 January 2025, according to Lease advice, which says leaseholders "can extend as soon as you become the owner" and can "buy the freehold as soon as you become the owner (of a house)"¹. The HomeOwners Alliance dates the change to February 2025 and describes it as the first step in rolling out the Leasehold and Freehold Reform Act 2024, which became law in May 2024³.

The change applies to leasehold flats and houses. Previously, a leaseholder had to have owned the property for two years before being able to extend the lease, and owners of leasehold houses had to wait two years before buying the freehold¹. The HomeOwners Alliance notes a practical limit: the Land Registry application must be processed before the notice can be served³.

Separately, from 3 March 2025 the threshold for the Right to Manage in mixed-use buildings rose from 25% to 50%, meaning leaseholders can take over management where no more than half the building's floor space, excluding common areas, is commercial³. Leaseholders also no longer have to cover the freeholder's legal fees when making a Right to Manage claim³.

Most of the Act's other measures are not yet in force. The HomeOwners Alliance reports that only 10 of the 125 sections of the Leasehold and Freehold Reform Act 2024 have been passed, and that implementation requires approximately 25 to 30 pieces of secondary legislation³. Among the measures still awaiting implementation are the abolition of marriage value, which currently adds to the cost of extending a lease or buying the freehold where 80 years or less remain, and the increase in the standard lease extension term to 990 years, up from 50 years for houses and 90 years for flats, with ground rent reduced to zero³.

A ground rent cap at £250 a year for leaseholders in England and Wales has been proposed but is not yet law, and the government says ground rent would ultimately fall to zero after 40 years under the proposals, which it says means many leaseholders will save £4,000 or more over the course of their lease³. The government published a draft Leasehold and Commonhold Reform Bill on 27 January 2026³.

Why it matters for households

Anyone buying a leasehold property no longer has to wait two years before starting a lease extension or, for houses, a freehold purchase. That removes a waiting period that previously left new owners unable to act while their lease continued to shorten. The change took effect on 31 January 2025, so it applies to purchases completed since then as well as to existing owners who have already passed the two-year mark.

The cost of extending or buying out a lease is not affected by this change. Marriage value still applies where 80 years or less remain on a lease, and the landlord's legal costs are still usually payable, until the further measures are implemented¹. The HomeOwners Alliance reports that nine out of 10 leaseholders would not buy another leasehold property, and that 86% have seen service charges rise in the past two years³.

What happens next

Consultations on leasehold enfranchisement valuation rates and on who pays the costs of the process were published in July 2026 and close in September and October 2026, after which the government will review responses and decide next steps¹. The HomeOwners Alliance gives the closing date as 21 October 2026³. A Court of Appeal hearing on the freeholders' challenge to parts of the Act is due in April 2027, after the High Court dismissed that challenge in October 2025³. Further leaseholder protections announced in July 2026, covering service charge information, annual building reports and dispute rights, are expected to come into force from 2027³.