Consultation launched on Leasehold Enfranchisement Valuation Rates

The government launched a consultation in July 2026 on Leasehold Enfranchisement Valuation Rates, the calculations that determine how much leaseholders pay to extend a lease or buy their freehold¹. The consultation was originally due to close on 23 September 2026 but has been extended until 21 October 2026¹. A separate consultation on changes to who pays the costs of the enfranchisement process was published at the same time, with consultations closing in September and October 2026².

The valuation rates consultation sits within a wider programme of leasehold reform. The Leasehold and Freehold Reform Act became law in May 2024, but only 10 of its 125 sections have been passed to date, and the government says implementation requires approximately 25 to 30 pieces of secondary legislation¹. The government published its draft Leasehold and Commonhold Reform Bill on 27 January 2026¹. In March 2026, housing minister Matthew Pennycook said the enfranchisement provisions of the 2024 Act could not be switched on until specific flaws in that Act were fixed through primary legislation¹.

Several reforms already in force affect leaseholders now. The two-year ownership rule for lease extensions was abolished from February 2025, and from 31 January 2025 leaseholders can extend or buy the freehold as soon as they become the owner¹. From 3 March 2025, the threshold for non-residential floor space in mixed-use buildings rose from 25% to 50%, widening access to the Right to Manage¹.

Reforms not yet implemented include abolishing marriage value, standardising how extension and freehold costs are calculated, and extending the standard lease extension term to 990 years for flats and houses, up from 90 years for flats and 50 years for houses, with ground rent reduced to zero¹. The government has promised to cap ground rents at £250 a year for leaseholders in England and Wales, with ground rent ultimately reduced to a peppercorn after 40 years under the proposals; it says this means many leaseholders will save £4,000 or more over the course of their lease¹. These changes cannot be introduced until the Commonhold and Leasehold Reform Bill has been passed².

Why it matters for households

The consultation concerns the rates used to work out what leaseholders pay for a lease extension or to buy their freehold, so its outcome affects the cost of those transactions for anyone with a leasehold flat or house in England and Wales¹. Until the valuation rates are settled and the relevant provisions of the 2024 Act are switched on, the existing calculation methods continue to apply¹. Leaseholders with 80 years or less remaining on a lease currently pay marriage value as part of the cost of extending, and that charge remains in place pending implementation¹. The government's ground rent cap and the 990-year extension term are proposals, not law, so ground rent and extension terms are unchanged for now¹.

What happens next

The valuation rates consultation closes on 21 October 2026, after which the government will review responses and decide next steps¹. A Court of Appeal hearing on the freeholders' challenge to aspects of the 2024 Act, including the abolition of marriage value, is due in April 2027¹. The government has said most of the new leaseholder protections announced in July 2026, covering service charge information, annual building reports and dispute rights, are expected from 2027¹. Prime Minister Andy Burnham has committed to bringing forward a Commonhold and Leasehold Reform Bill in this parliamentary session¹. Further detail on how consultations work and how to respond is set out in the guide to consultations and discussion papers, within the wider regulation and policy section.