Update on leasehold reform

- The challenge to the new leasehold reform legislation that was brought to court was dismissed by the High Court on Friday, 24 October 2025.

- In a 167-page judgment, the High Court dismissed the claims of a group of freeholders who argued that the Leasehold and Freehold Reform Act 2024 (“LAFRA”) violates their human rights.

- Specifically, the freeholders challenged three measures within the LAFRA:

1. the removal of their right to a 50% share of marriage value when a lease with 80 years or less is extended;
2. the cap on the ground rent that can be taken into account in calculating the price payable for an extended lease; and
3. the elimination of the freeholders’ right to charge leaseholders legal and professional fees for extending leases.

The freeholders have, at this stage, not succeeded in a revision to the law.  They have, however, delayed the implementation of the Act by more than 18 months. 

What next?

It is anticipated that the freeholders will seek to appeal. They will need permission to bring an appeal. They have to seek permission from the High Court first.

Given the scale and importance of the issue, we would expect an appeal to follow, based on the sums of money involved for freeholders.

If the High Court refuses permission for an appeal, the freeholders can seek permission directly from the Court of Appeal. 

If the freeholders obtain permission to appeal, another question is whether the appeal goes to the Court of Appeal first, or leapfrogs to the Supreme Court. A leapfrog appeal is rare, but it is a possibility if the courts are persuaded there is adequate public interest.

How long will it take? 

An application for permission to appeal from the High Court to the Court of Appeal must usually be made within 21 days of the judgment. An application for a leapfrog appeal direct to the Supreme Court must be made within 14 days of the date of judgment.

Typically, an appeal to the Court of Appeal will take 12–18 months, from permission to hearing. An appeal to the Supreme Court is usually heard about a year after the application.

Conclusion

We will continue to update you, however, it does seem that there will be ongoing delays to the full implementation of the leasehold reform law, with full abolition of marriage value and the introduction of 990-year lease extensions.

What to do?

Do check your lease and, if you have not yet extended, consider extending now, as there is no guarantee that marriage value will be abolished.