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🏢 Leasehold Guide
Leasehold Rights: Service Charges, Right to Manage & Lease Extension in 2026
Own a leasehold flat or house and not sure what your rights are? This guide explains service charges, ground rent, the right to manage, lease extensions and what's changing under the Leasehold and Freehold Reform Act 2024.
📅 Last reviewed: July 2026📚 Sources: GOV.UK, Citizens Advice🏴 England & Wales
⚖ Know Your Rights at a Glance
Service charges must be reasonable — you can challenge unreasonable service charges at the First-tier Tribunal (Property Chamber) if your home is in England, or the Leasehold Valuation Tribunal if your home is in Wales.
Section 20 consultation: Your freeholder must consult leaseholders before carrying out major works costing more than £250 per leaseholder.
Right to Manage (RTM): Leaseholders in a qualifying building can take over management from the freeholder without buying the freehold.
Lease extension: You have a statutory right to extend your lease by 90 years (for flats) at a peppercorn ground rent. You do not have to have owned your flat for two years before you ask to extend your lease or buy the freehold. That waiting period was removed on 31 January 2025.
Leasehold and Freehold Reform Act 2024: Significant changes to leasehold law — including easier enfranchisement.
Ground rent: For new leases from 30 June 2022, ground rent is capped at zero (peppercorn). Existing ground rent escalation clauses remain but are under review.
🆕 Leasehold and Freehold Reform Act 2024 — major changes underway
The Leasehold and Freehold Reform Act 2024 is being brought into force in stages, on dates set by regulations. Parts already in force include: since 31 January 2025, you no longer need to have owned your home for two years before you claim a lease extension or the freehold; and since 3 March 2025, a building can have up to 50% non-residential space (before, 25%) and still qualify for the right to manage. Other parts, such as the ban on new leasehold houses, 990-year lease extensions and new service charge rules, start on dates set by regulations. Always check the current position on specific rights at gov.uk.
Service charges — your rights
Service charges are amounts you pay to your freeholder or management company for the maintenance and running of the building. Key rights:
Service charges must be reasonable — you can challenge unreasonable charges at the First-tier Tribunal (Property Chamber) if your home is in England, or the Leasehold Valuation Tribunal if your home is in Wales, free of charge
You can request a summary of relevant costs and inspect receipts and invoices
You must receive advance consultation before major works costing over £250 per leaseholder (Section 20 consultation)
Administration charges (e.g. for consent, information packs) must also be reasonable and can be challenged at tribunal
Lease extension
You do not have to have owned your flat for two years before you ask to extend your lease or buy the freehold. That waiting period was removed on 31 January 2025. You still need to meet the other conditions for a statutory claim. A statutory lease extension adds 90 years to the current unexpired term, at a peppercorn ground rent. The cost depends on the property value and years remaining.
As a rule of thumb, when a lease falls below 80 years it becomes significantly more expensive to extend and harder to sell or mortgage. Act before you reach 80 years remaining.
Under the Leasehold and Freehold Reform Act 2024, the process for lease extension is being made cheaper and simpler — check gov.uk for the latest position.
Right to Manage
Leaseholders in a qualifying building can exercise the Right to Manage (RTM) — taking over management from the freeholder without needing to buy the freehold. Requirements:
At least two-thirds of flats must be held on long leases
At least 50% of leaseholders in the building must participate
The building must be self-contained and must not be a converted house of 4 units or fewer where the freeholder lives
RTM gives leaseholders control of building management, including appointing their own managing agents. The process requires setting up an RTM company and serving a notice on the freeholder.
1
Challenge unreasonable service charges at tribunal
Write to your freeholder first. If unresolved, apply to the First-tier Tribunal (Property Chamber) if your home is in England, or the Leasehold Valuation Tribunal if your home is in Wales — no fee for most applications.
2
Request a summary of service charge costs
You are entitled to a written summary of service charge costs within 1 month of request, and to inspect receipts.
3
Serve a Section 20 consultation response
If you receive a Section 20 notice about major works, respond within the consultation period — you can object and nominate alternative contractors.
4
Get a lease extension valuation early
If your lease is approaching 80 years, get a professional valuation from a specialist leasehold solicitor or surveyor before it falls below the 80-year mark.
5
Form an RTM company if your building qualifies
Speak to a specialist leasehold solicitor about the RTM process. It can dramatically improve building management and reduce costs.
Frequently asked questions
My freeholder is refusing to provide service charge accounts — is that legal?
No. You are entitled to request a written summary of costs and inspect relevant documents. Refusal to provide these within the required timeframe is a breach of the Landlord and Tenant Act 1985.
Can I challenge my service charge if I think it's too high?
Yes. If your home is in England, apply to the First-tier Tribunal (Property Chamber) for a determination of whether the charges are reasonable. If your home is in Wales, apply to the Leasehold Valuation Tribunal. This is free and you don't need a solicitor (though one helps for complex cases).
What is Section 20 consultation?
Before carrying out major works costing more than £250 per leaseholder, your freeholder must go through a statutory consultation process (Section 20 of the Landlord and Tenant Act 1985). If they don't, they can't recover more than £250 per leaseholder for the works.
What happens if my lease runs out?
If your lease expires without extension or enfranchisement, the property reverts to the freeholder. This is rare in practice for residential leases, but short leases (under 70 years) are hard to sell and mortgage. Extend early.
Can I buy my freehold?
If you own a flat in a block, you may be able to collectively enfranchise (buy the freehold with other leaseholders). If you own a leasehold house, you have an individual right to buy your freehold. The Leasehold and Freehold Reform Act 2024 is making this cheaper and easier.
What is ground rent and can it increase?
Ground rent is an annual payment to the freeholder. For new leases from 30 June 2022, ground rent is legally capped at zero (a peppercorn). Older leases may have escalating ground rent clauses — these can cause serious mortgage and saleability issues. Get specialist advice if yours is escalating.
What is a managing agent and can we change them?
A managing agent is appointed by the freeholder to manage the building. You cannot unilaterally change them unless you exercise the Right to Manage. However, you can apply to the tribunal for an order appointing a new manager if the current one is failing.
📞 Free help and support
First-tier Tribunal (Property Chamber) in England, Leasehold Valuation Tribunal in Wales: gov.uk/housing-tribunals
⚠ Important disclaimer: This guide covers leasehold law in England and Wales as at July 2026. General legal information only — not legal advice. Verify with ACAS, GOV.UK or Citizens Advice before acting. ukworkrights.co.uk — Not a law firm.
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