Governs how a freeholder can forfeit (take back) a leasehold for breach of covenant. Requires formal notice giving time to remedy. Without this, your flat cannot be forfeited.
If your lease requires landlord consent to sublet, consent cannot be withheld unreasonably. Most leases contain this protection. It stops freeholders blocking perfectly reasonable lettings.
The core law governing how service charges work. Requires transparency, itemised accounts, the right to inspect, and sets the £250 threshold for when directors must consult leaseholders before major works. Breaching this can result in criminal prosecution.
Leasehold Reform, Housing and Urban Development Act 1993
In force
Part I (collective enfranchisement), s.42 (lease extension notice), s.45 (counter-notice), s.56 (90-year extension)
Gives leaseholders the right to extend their own lease (typically 90 years added) and the collective right to buy the building (enfranchisement). Sets out timelines, valuation rules, and who qualifies. This is why leaseholders have power.
Created the Right to Manage (RTM). If 50% of leaseholders band together, you can take over building management from the freeholder, without buying the freehold. Runs through a company structure. Critical for buildings with poor freeholder management.
Section 172 (duty to promote success), s.174 (care, skill, diligence)
Governs director duties. A director must promote the company's success (in this case, the building's management), and exercise care, skill, and diligence. Breaching these duties can result in personal liability.
Fire risk assessment duties, unlimited fines, 2 years imprisonment
Directors of buildings with flats must carry out fire risk assessments and keep them updated. Failure carries unlimited fines and potential criminal prison sentences. One of the highest-penalty areas of leasehold law.
Peppercorn ground rent on new leases from 30 June 2022
From mid-2022, new leases can only be granted with peppercorn (nominal) ground rent. No more building-destroying "doubling ground rent" clauses. Protects future flat buyers from toxic rent escalation. Doesn't apply to existing leases.
Building Safety Regulator, 18 months/7+ storeys, unlimited fines
Creates oversight for high-rise residential buildings (18+ months old, 7+ storeys). Directors must notify the Building Safety Regulator of major incidents. Failure to comply: unlimited fines. Created following Grenfell Tower.
Marriage value abolition, 990-year extensions, RTM reforms, two-year ownership removal
Royal Assent 24 May 2024. Marriage value (removed from calculations below 80 years) and 990-year extensions are NOT YET IN FORCE. But two-year ownership removal (31 Jan 2025) and RTM cost reforms (3 Mar 2025) are already live. This Act will dramatically cut lease extension costs when marriage value provisions commence.
Pet provisions from 1 May 2026, Section 21 abolition
Some provisions are already in force (e.g. Section 21 "no-fault eviction" abolition). Pet clauses come 1 May 2026: landlords cannot blanket-ban pets; they must consider reasonable requests. Affects subletting on leasehold flats. Transforms tenant and sub-tenant rights.
Published 27 January 2026. Not yet law, but undergoes Parliamentary pre-legislative scrutiny. Expected to further tighten forfeiture rules and expand commonhold as an alternative to leasehold. Timeline for enactment: unclear.
Disclaimer: This page is for general information only. It is not legal advice. Laws are complex, and every building and lease is different. When in doubt, consult a qualified leasehold solicitor, property lawyer, or chartered surveyor. Building Trust does not provide legal advice, and AI-generated content may contain errors.