Eleven days. That is how long it has been since the government's consultation on new valuation rates for lease extensions quietly closed on 21 October 2026, with no outcome published yet. For London flat owners sitting on leases under 90 years, that silence is more expensive than any headline. Every month of delay can shave value off a flat, and every rumour of reform tempts owners to wait for a better deal that may not arrive on the timeline they expect.
The leasehold reform bill London flat owners are tracking in November 2026 has become a moving target: a valuation consultation with no result, a bill "before Christmas," a select committee pushing for a faster ground rent cap, and commonhold still years away. This article cuts through the noise and sets out what to actually do this month. Nothing here is legal or valuation advice; owners should take independent RICS and legal advice before acting.
Key Takeaways
- The valuation rates consultation closed 21 October 2026; results are not yet published, so current premium calculations, including marriage value, still apply.
- The Leasehold and Freehold Reform Act 2024 already contains provisions abolishing marriage value and introducing a new standard valuation method, but these provisions have not been commenced. Until a commencement date is set, marriage value remains payable on leases under 80 years.
- A draft Commonhold and Leasehold Reform Bill was published 27 January 2026; the Prime Minister has promised a bill before Christmas 2026, but this is not yet law.
- The Select Committee wants a 20-year ground rent sunset (not 40) and is pushing for a 2027 cap, still only a proposal.
- Owners with leases nearing or under 80 years face a real choice between extending now under the current marriage-value regime or waiting for a reformed regime whose timing and rates remain uncertain.
- New powers to cap administration and estate charge fees were announced 29 September 2026, with consultation still to come.
Where the Leasehold Reform Bill London Flat Owners Face Stands Today
The Leasehold and Freehold Reform Act 2024 is already partly in force. Since 31 January 2025, the two-year ownership rule has been scrapped, meaning owners can apply to extend their lease or buy their freehold from day one of ownership. Right to Manage reforms, which make it easier for leaseholders to take over building management, took effect from 3 March 2025.
What is not yet in force is the Act's valuation overhaul, which would abolish marriage value and replace it with a standard method using prescribed deferment and capitalisation rates, along with the wider package of ground rent caps and commonhold reform. Here is the current state of play.
| Milestone | Date | Status |
|---|---|---|
| Two-year ownership rule removed | 31 Jan 2025 | In force |
| Right to Manage reforms | 3 Mar 2025 | In force |
| Draft Commonhold and Leasehold Reform Bill | 27 Jan 2026 | Published, not law |
| Select Committee report (20-year sunset) | 27 May 2026 | Recommendation only |
| Valuation rates consultation closes | 21 Oct 2026 | Closed, outcome pending |
| Admin/estate charge cap announcement | 29 Sep 2026 | Announced, consultation pending |
| Full bill introduction | Promised "before Christmas" 2026 | Not yet introduced |
| Ground rent cap | Committee urging 2027 | Proposed, not confirmed |
| Marriage value abolition (LAFRA 2024 valuation provisions) | Enacted but not commenced | Awaiting commencement date |
Nothing here is settled law except the two provisions already in force and the uncommenced valuation provisions, which remain inactive until a commencement date is fixed. Everything else is a promise, a proposal, or a draft.
Why the Valuation Consultation Matters More Than the Bill
The consultation that closed on 21 October 2026 covered the deferment and capitalisation rates needed before the Act's new valuation method, including abolition of marriage value, can be commenced. These rates are technical, but they drive the price owners pay. Because the outcome has not been published, nobody, including RICS surveyors, can yet say definitively how future premiums will move once the new regime goes live.
This uncertainty cuts both ways. Owners hoping reform will make extensions cheaper may be disappointed if the prescribed rates land less favourably than expected. Owners who delay risk their lease dropping further toward, or past, the 80-year threshold, where marriage value still applies under today's law regardless of any future rate change.
The 80-Year Cliff Edge: Still Live Under Current Law
Marriage value is an extra cost added to lease extension premiums when a lease has fewer than 80 years remaining. LAFRA 2024 already contains provisions to abolish marriage value entirely and replace the valuation method, but those provisions are not yet commenced. Until the government sets a commencement date and confirms the prescribed rates, marriage value remains payable in full under current law.
This leaves London flat owners near the 80-year mark with a genuine decision: extend now under the existing regime, with a known (if costly) marriage-value calculation, or wait for the reformed regime that removes marriage value. Waiting carries risks. The commencement date is unknown and could slip well beyond 2027. The prescribed rates, once set, could in some cases produce higher premiums than owners expect. Lenders may be reluctant to mortgage flats with very short leases in the meantime, and a flat with fewer than 80 years remaining is typically harder to sell, whatever reform is pending.
A RICS valuation can set out, in concrete terms, what extending now would cost versus the potential cost and risk of waiting. For leases between 80 and 90 years, the decision is less urgent but still worth reviewing, particularly before a sale, remortgage, or any legislative change affecting valuation methodology.
What the Draft Bill and Ground Rent Cap Actually Propose
The draft Commonhold and Leasehold Reform Bill, published 27 January 2026, sets out the government's direction but is not enacted. It is expected to correct known drafting flaws in LAFRA 2024's valuation scheme, alongside addressing ground rents and commonhold. The Housing, Communities and Local Government Select Committee's report of 27 May 2026 recommended a 20-year sunset on existing ground rents, rather than the 40 years floated earlier. On 1 October 2026, committee chair Abena Oppong-Asare MP wrote to ministers urging that a ground rent cap take effect in 2027.
The Prime Minister told the Labour party conference that the bill would be introduced before Christmas 2026. Introduction of a bill, however, is only the start of the parliamentary process, not the point at which new rules take effect. London flat owners should treat any ground rent cap, and any commencement of the marriage-value abolition, as a 2027-or-later prospect, not an immediate change.
Commonhold and the Cladding Bill: Separate Tracks
Commonhold, a system allowing flat owners to own their property outright without a landlord, could reach the statute book in 2027, with the first commonhold sales expected two to three years after that. It will not affect existing leasehold flats retrospectively in the near term.
A separate Cladding Remediation Bill is also progressing through Parliament, addressing building safety costs rather than lease length or ground rents. Owners dealing with cladding issues should track that bill independently, as it uses a different legal mechanism.
Service Charges and Estate Charges: A New Scrutiny Push
On 29 September 2026, the Ministry of Housing, Communities and Local Government announced plans for powers to cap administration fees and estate charges connected to lease permissions, things like consent to alter a flat or charges for managing communal estates outside a formal leasehold structure. A consultation on the detail is expected to follow. This is not yet law, but it signals where enforcement attention is heading.
Flat owners should, in the meantime:
- Request an itemised breakdown of any administration fee before paying it.
- Compare estate charge increases year-on-year against actual works carried out.
- Keep written records of all management company correspondence.
What London Flat Owners Should Do This November
Given the leasehold reform bill London flat owners are watching remains unenacted in its fuller form, practical steps matter more than speculation.
- Get a RICS valuation now if the lease is under 90 years, especially under 80. This establishes a defensible premium figure under current law, including marriage value where it applies.
- Serve a Section 42 notice where appropriate to lock in a valuation date, protecting against further lease decline while negotiations proceed.
- Avoid pausing a sale, purchase, or lease extension purely on the hope of better terms once marriage value is abolished; the commencement date is not yet set.
- Check ground rent terms on any flat being purchased this autumn, since existing ground rent structures are unaffected until any cap becomes law.
- Scrutinise service charge and estate charge statements now, ahead of any formal fee-cap consultation.
Buying a Flat This Autumn: A Short Checklist
| Check | Why It Matters |
|---|---|
| Remaining lease length | Under 80 years triggers marriage value costs under current law |
| Ground rent clauses | Doubling or escalating clauses remain legal until reform passes |
| Service charge history | Reveals management quality and future cost trends |
| Section 20 notices | Flags major works that could mean large bills |
| Freeholder identity | Affects ease of future lease extension negotiations |
FAQ
Is the leasehold reform bill already law?
No. Parts of the 2024 Act are in force, but the valuation provisions that would abolish marriage value, along with ground rent caps and commonhold reform, remain uncommenced or in draft as of November 2026.
Should I wait for the ground rent cap before buying a flat?
Not necessarily. The cap is only proposed for 2027 at the earliest, and timing could slip further during the parliamentary process.
Will my lease extension premium go up or down after the valuation consultation?
It is not yet known. The outcome has not been published, so premiums should be assessed under current rules, including marriage value, until rates are confirmed and the new provisions are commenced.
Does the two-year ownership rule removal affect new flat buyers?
Yes. Since 31 January 2025, owners can apply to extend their lease from the day they complete their purchase, without waiting two years.
What is marriage value and does reform remove it?
Marriage value is an added cost on leases under 80 years. LAFRA 2024 contains provisions to abolish it, but these have not been commenced, so marriage value still applies today. Owners face a choice between extending now under the current regime or waiting for commencement, which carries its own risks and uncertainties.
Conclusion
The leasehold reform bill London flat owners are following in November 2026 represents real progress on paper, but almost none of it is in force yet. The valuation consultation outcome is pending, the Act's marriage-value abolition remains uncommenced, the bill is only promised before Christmas, and the ground rent cap is pushed toward 2027 at the earliest. For owners with leases nearing 80 or 90 years, the safest course this November is to get an independent RICS valuation, understand the current premium position including marriage value, and weigh the risks of waiting against the certainty of acting under today's rules. Buyers should treat ground rent and service charge terms as unchanged for now and build due diligence accordingly. When the bill is formally introduced and a commencement date for the new valuation method is confirmed, revisit the position, but do not let a flat's lease value erode while waiting for legislation that has not yet taken effect. This article is general information only and does not constitute legal or valuation advice.
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Lease Length Urgency Checker
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General guidance only, not legal or valuation advice. Reflects the law in force as of November 2026.“;
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