Leasehold Reform, Housing and Urban Development Act 1993

What it does

Chapter I gives qualifying leaseholders of flats the right to buy the freehold of their building together, through a nominee purchaser (usually a company they own). Chapter II gives each qualifying leaseholder the right to a new lease of the flat for an extra 90 years at a peppercorn ground rent.

Why it matters

Many share-of-freehold companies exist because of this Act. If your company bought the freehold this way, it is now the landlord, with all the duties that go with it. Leaseholders in your building may still use the lease extension right against your company.

Key points

• Since 31 January 2025, a leaseholder no longer needs to have owned the flat for two years before claiming (Leasehold and Freehold Reform Act 2024).
• Since 3 March 2025, buildings with up to 50% non-residential floor area can be enfranchised (it was 25%).
• The price (premium) is set by a valuation formula in the Act. Changes to the formula in the 2024 Act, including removing marriage value and 990-year extensions, are enacted but not in force yet.
• Disputes about price and terms go to the First-tier Tribunal (Property Chamber).