Leasehold and Freehold Reform Act: Spring 2026 Update

The freeholders have just been granted the right to take their challenge to the Leasehold and Freehold Reform Act to the Court of Appeal. In this update, we will look at how we got here, what this latest update means, and most importantly, what the consequences may be for leaseholders.

Key Takeaways: Spring 2026 Update

• The Big News: The Court of Appeal has granted freeholders permission to challenge the Act, specifically regarding the removal of Marriage Value.
• The New Timeline: A final judgment is now unlikely until 2027. If the case proceeds to the Supreme Court, full implementation could be pushed to 2028.
• The Immediate Impact: Current leasehold laws remain in place. If you need to sell or extend in the next 1 to 2 years, waiting for the "cheaper" law may actually cost you more as your lease continues to shorten.

How we got here

The High Court originally decided in 2025 that the government's proposals from the Leasehold and Freehold Reform Act were legal and could go ahead as planned. These proposals included:

• Removing marriage value
• Moving to 900-year lease extensions
• Removing ground rents

The freeholders' main argument against these changes was that these laws breached their human rights. While the courts decided against that argument last year, the representations to the Court of Appeal have proven to have enough merit that the court wants to hear them out.

The New Timeline

There is not a specific timeline for this process yet, but current estimates suggest:

• 2027: We are unlikely to have a judgment from the Court of Appeal until next year.
• 2028: Depending on the outcome, there is a possibility of taking it one step further to the Supreme Court, which could push a final decision into 2028.

We are at least another year out from any coherence or clarity on what could be happening with short leases.

What are the consequences for leaseholders?

The impact of this delay is very situation-dependent. It comes down to your appetite for risk and your specific timescale.

If you are looking to sell in the next 1 or 2 years

Given the timelines laid out, there is a good chance that even if the Act does come into place, it is not going to benefit you in the next year or two anyway. Selling sooner might be the right thing to do. The longer your lease goes on, the shorter the term becomes and the more expensive it will be to renew based on current calculations. Selling sooner makes the property more appealing for buyers and less costly for you to handle the extension.

If you have a longer timescale (e.g., 5 years)

This is where your appetite for risk plays a bigger part. You might choose to wait, hoping that marriage value is removed in the next few years and your extension becomes cheaper. However, if the Court of Appeal or Supreme Court comes down in favor of the freeholders, the government may not be able to make the changes as hoped. In that case, you have simply waited a few years while your lease got shorter and more expensive to renew under the current rules.

While the aim of the reform is to make extensions cheaper, the government may also introduce a standardized way of calculating them that could fall in a way that makes an extension more expensive in the future rather than less.

Unsure how this delay affects your property?

Whether you are planning to sell now or just want to understand the risks of waiting, we are here to help you navigate the 2026 landscape.

Contact us today for expert advice on your short lease flat.

02030 266 288 / info@shortleasepropertysales.co.uk

Disclaimer: This post does not count as legal or financial advice. I am not a lawyer or a financial adviser.