Leasehold reform and what it could mean for South London flat owners

Leasehold reform and what it could mean for South London flat owners

Dreaming of a Victorian conversion in Dulwich or a modern flat near Peckham Rye? In South London, that often means buying leasehold and, with it, questions about lease length, service charges, and who’s responsible for major repairs will arise.

Or maybe you already own a flat in South London, but you’re facing challenges with rising costs, and the lack of transparency that surrounds them.

Leasehold reform aims to make these questions and challenges easier to navigate and reduce surprises for both buyers and sellers. If you own a flat in South London, or you’re planning to buy one, these changes could affect your costs, rights, and how smoothly your next move goes – and here’s how.

Why leasehold reform matters

Leasehold can feel complicated. Buyers often discover the implications late, while owners often only feel the pinch when selling.

Across South London, the same concerns crop up repeatedly: Shortening leases, unpredictable extension costs, and service charges that are difficult to interrogate.

That’s why the Leasehold and Freehold Reform Act 2024 is now law, but many changes still rely on consultation and secondary legislation before they fully take effect.

If you want a neutral, plain-English overview of what’s happening, the House of Commons Library’s leasehold reform explainer is a useful reference point

Lease extensions: what’s changing

In South London, lease length is one of the first things buyers and mortgage lenders look at when assessing a flat. If a lease is getting short, it can limit who’s able to proceed, even when the home itself ticks every other box.

Reform aims to make lease extensions simpler and cheaper.

Proposals move towards much longer standard lease extensions of 990 years, with ground rent reduced to a peppercorn. It also removes “marriage value”, which has historically increased costs when leases drops below 80 years.

Leaseholders would still need to formally extend their lease, but the process is intended to be clearer and more predictable than before.

Service charges: clearer information, fewer grey areas

Service charges often raise questions for South London buyers and homeowners, such as “what am I paying for?” or “why did this increase?”.

In 2025, the Government consulted on strengthening protections around charges and services, with proposals focused on clearer information and stronger rights to scrutinise and challenge costs.

This matters in areas dominated by flats, such as the populous areas of South London, as transparency helps buyers commit and keeps negotiations calmer for sellers.

What the leasehold reform means if you’re selling a South London flat

If you’re thinking of selling, leasehold reform could work in your favour:

• Clearer lease extension rights can remove common buyer objections
• More transparent service charges reduces uncertainty during negotiations
• Buyers often feel more confident when future costs are easier to understand

What the leasehold reform means if you’re buying a South London flat

If you’re thinking of buying in South London, leasehold reform should make flat ownership less intimidating:

• You should get clearer answers about lease length, rights, and responsibilities
• Greater transparency will help with clearer budgeting
• Whilst advice will still be needed, you should expect fewer surprises

A calmer future for flat ownership

Leasehold reform won’t fix everything overnight, and some changes will take time to filter through, but it’s designed to make buying, selling and owning flats more secure and easier to navigate.

For South London areas in which flats dominate, like Peckham and Brixton, that’s good news.

Want to know how these changes affect your property or your buying journey? Speak to the Urban Village team, today. You can get in touch via our website or call us on 020 3519 9121 to speak to someone with local knowledge, and leasehold experience.