Commonhold, the Leasehold and Freehold Reform Act, ground rent abolition. The headlines sound like a revolution. The reality is more nuanced. Here's what's actually changing, what's staying the same, and what you need to do now.
This page describes the position in England and Wales. Scotland and Northern Ireland have different systems. Information only, not legal advice. Building Trust is a technology company, not a law firm. Always take professional advice on your specific situation.
Leasehold reform has been promised for years. Here's where we actually are.
The Act passed into law but most provisions require secondary legislation before they take effect. The Act covers lease extensions, enfranchisement, building safety, and estate management.
The Leasehold Reform (Ground Rent) Act 2022 caps ground rent at a peppercorn for most new residential leases granted after 30 June 2022. Existing leases are not yet affected.
The Government published a draft bill signalling the intention to make commonhold a viable alternative to leasehold. Consultation is ongoing. No commencement date has been set.
Key reforms from the 2024 Act - including abolition of marriage value and a standard 990-year lease extension - have not yet commenced. Dates depend on secondary legislation and valuation methodology consultation.
The Government's stated ambition. In practice, commonholdCommonhold is a form of freehold ownership for flats, created by the Commonhold and Leasehold Reform Act 2002. Each flat owner owns their unit outright (no lease) and jointly owns the common parts through a commonhold association. legislation.gov.uk requires a Commonhold AssociationA commonhold association is a private limited company that owns and manages the common parts of a commonhold development. All unit-holders are members. It operates under a commonhold community statement that sets the rules., community statementThe commonhold community statement (CCS) is the constitutional document for a commonhold development. It sets out the rights and obligations of unit-holders and the commonhold association, including rules on maintenance contributions, alterations, and use of common parts., and willing developers. No major housebuilder has adopted it yet.
The reforms address some of the worst excesses of leasehold. But most of the day-to-day obligations stay exactly where they are.
Already capped at a peppercorn for new leases. Existing leases with escalating ground rent may be addressed in future legislation, but nothing has commenced yet.
Marriage value (the biggest cost for short leases) is set to be abolished. When this commences, extending a short lease will become significantly cheaper. But it hasn't commenced yet.
The 2024 Act raises the non-residential floor from 25% to 50%, letting more mixed-use buildings qualify, and is expected to reduce the cost of buying the freehold. These provisions have not yet commenced as of April 2026.
The 2022 Building Safety Act already applies. Accountable persons, safety case reports, and the Building Safety Regulator are live requirements for higher-risk buildings (over 18m or 7+ storeys). Broader external wall safety duties under the PAS 9980 regime apply to buildings over 11m.
Your lease still defines who pays what. The proportion, the items covered, the reserve fund - all set by the lease. Even under commonhold, an equivalent "commonhold assessment" exists.
The freeholder (or RTM company, or commonhold associationA commonhold association is a private limited company that owns and manages the common parts of a commonhold development. All unit-holders are members. It operates under a commonhold community statement that sets the rules.) is still responsible for the structure and common parts. Leaseholders are still responsible for their demised premises.
Major works over £250 per leaseholder still require proper consultation. The process, timelines, and Tribunal rights are unchanged.
If you're a director of an RTM company or freehold company, your statutory duties under the Companies Act, fire safety obligations, and insurance responsibilities continue unchanged.
Under commonhold, you own your flat outright (not on a diminishing lease) and share ownership of common areas through a Commonhold Association. But many of the same management challenges remain.
"Commonhold means no more service charges"
Not true. Commonhold associations levy a "commonhold assessment" that functions identically to a service charge - covering insurance, repairs, cleaning, and management costs. The bill changes, the obligations don't. Pipes still leak. Roofs still need replacing. Someone still needs to collect the money, manage contractors, and make decisions. The governance structure changes, but the work remains.
"My lease problems go away under commonhold"
Existing leases don't automatically convert to commonhold. Conversion requires unanimous consent from all leaseholders - a near-impossible bar in most buildings. For the vast majority of existing buildings, leasehold continues. Understanding what your lease actually says remains the most practical thing you can do right now.
"My building will be forced to convert to commonhold"
No. Conversion is voluntary and requires the consent of every leaseholder, every mortgagee and the freeholder. No current Government proposal forces existing leasehold buildings into commonhold. The reform agenda is about making commonhold available and attractive for new builds, and about improving the terms of leasehold for existing leaseholders. It is not about compelled conversion.
Whatever reforms come, your existing lease is your operating document today. Know what it says about service charges, repairs, alterations, and insurance. LEASE-iQ reads it in seconds, not days.
If your lease is below 80 years, you're losing value every month. Marriage value abolition will help - when it commences. But waiting costs money. Get a valuation now and decide based on facts, not headlines.
Fire safety, Companies House filings, insurance, service charge demands - these obligations exist today regardless of future reform. BLOCK-iQ tracks your statutory obligations so nothing falls through the cracks.
The 2024 Act is law but most provisions aren't live. Watch for commencement orders - particularly on marriage value abolition and the 990-year standard extension. We'll update this page as they're published.
Not sure where you stand? Talk to us.
Commonhold is still new territory in England. We are tracking developments closely and happy to discuss what it means for your building.
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