Library · Act of Parliament
Commonhold and Leasehold Reform Act 2002
Right to manage, administration charges, ground rent notices, limits on forfeiture, and the original commonhold regime.
What it does
The 2002 Act created the right to manage and commonhold, and added protections for leaseholders on charges and forfeiture.
Key parts
- Part 2, Chapter 1, right to manage (RTM): qualifying leaseholders can form an RTM company and take over management without buying the freehold or proving fault. Sections 71 to 113 set out the notices and timetable.
- Schedule 11, administration charges: fees for consents, information, sale packs, arrears letters or breaches must be reasonable, and every demand needs the prescribed summary of rights.
- Section 166: ground rent is not payable until the landlord serves the prescribed notice.
- Sections 167 and 168: forfeiture is limited. It cannot be used for small arrears (currently £350 or less, unless outstanding for more than three years), and other breaches must first be admitted or decided by a tribunal or court.
- Part 1, commonhold: freehold ownership of flats with a commonhold association managing the common parts. Very few have been created.
Coming changes
The draft Commonhold and Leasehold Reform Bill (January 2026) proposes replacing Part 1 with a new commonhold regime and abolishing forfeiture for residential long leases. These are proposals, not law.
Read the official text at legislation.gov.uk
Crown copyright, reused under the Open Government Licence v3.0. Summary by Freeholdpilot, checked 1 November 2026. This is legal information about the law in England and Wales, not legal advice for your building. For advice, speak to a solicitor.