Section 146 (forfeiture notice requirements)Section 146 of the Law of Property Act 1925 sets out the procedure a landlord must follow before forfeiting a lease for breach of covenant. The landlord must serve a notice specifying the breach and giving the leaseholder reasonable time to remedy it. legislation.gov.uk
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.
What this means for youYour freeholder cannot just take your flat back. They must send you a formal notice, give you time to fix the problem, and go through the courts. If you get a s.146 notice, you have options.
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.
What this means for youIf you want to sublet and your lease says you need consent, your freeholder cannot say no without a proper reason. "I don't like it" is not enough.
SS 18 to 30 (service charges), s.20 (£250 consultation), s.21 to 22 (accounts/inspection), s.25 (criminal offence), s.27A (tribunal)
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.
What this means for youYou can demand to see every receipt behind your service charge. If the freeholder ignores you, that is a criminal offence. If charges are unreasonable, you can challenge them at the tribunal without a solicitor.
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.
What this means for youYou can extend your lease or buy your freehold. These are statutory rights your freeholder cannot refuse. The cost depends on your remaining term, property value, and ground rent. Get a valuation before you start.
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.
What this means for youIf your freeholder is doing a poor job, you do not have to put up with it. Get 50% of leaseholders on board and you can take over management. No need to prove fault. No need to buy the freehold.
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.
What this means for youIf you are a director of an RTM, SoF, or RMC company, you carry personal liability. You must act in the company's best interests and with reasonable care. Ignorance is not a defence.
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.
What this means for youIf you manage a building with flats, you must have a current fire risk assessment. No exceptions. Out of date or missing? You face unlimited fines and up to two years in prison. Get it done.
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.
What this means for youIf you are buying a new-build flat (lease granted after 30 June 2022), your ground rent should be zero. If it is not, the lease may be non-compliant. Existing leases with doubling ground rent are not affected by this Act.
Building Safety Regulator, 18m or 7+ storeys (with 2+ residential units), unlimited fines
Creates oversight for higher-risk residential buildings (at least 18m tall or 7+ storeys, with 2 or more residential units). Directors must notify the Building Safety Regulator of major incidents. Failure to comply: unlimited fines. Created following Grenfell Tower.
What this means for youIf your building is 7+ storeys with flats, you must register with the Building Safety Regulator and report major safety events. This is in addition to fire safety obligations. Directors who ignore this face unlimited fines.
Two-year rule abolition, RTM cost reforms, marriage value abolition (pending), 990-year extensions (pending), service-charge transparency regime (pending), prescribed standardised service-charge demand format (pending)
Royal Assent 24 May 2024. Section 27 (two-year ownership rule abolished) commenced 31 January 2025. RTM cost reforms commenced 3 March 2025. Most other LFRA provisions remain pending commencement via secondary legislation.
The RICS Service Charge Residential Management Code, 4th edition came into force on 7 April 2026 via The Approval of Code of Management Practice (Residential Management) (Service Charges) (England) Order 2026 (SI 2026/298). The Secretary of State approved the Code. Compliance is mandatory for RICS members. The Code is around 100 pages, extensively rewritten, and section 14.8 specifically governs the format and content of demands for service or administration charges and ground rent. It incorporates changes driven by both the Building Safety Act 2022 and LFRA 2024. Any freeholder using a RICS-regulated managing agent is already on the new regime. Self-managing directors and informal freeholders are not strictly bound by the RICS Code, but using a non-compliant demand template now invites a Tribunal challenge from any informed leaseholder.
The LFRA 2024 will impose its own statutory prescribed standardised service charge demand format via secondary legislation, replacing Section 21B. MHCLG consulted on it in 2025 (consultation closed 26 September 2025). Regulations expected from MHCLG with transitional arrangements. The new statutory demand will require a minimum set of information including the name and address of leaseholder and landlord, the total amount payable on a standardised budget, payment details, deadline, and consequences of non-payment, plus an annual report and standardised service-charge accounts. Existing Section 21B, Section 47/48, and Section 42 duties remain in force until the LFRA SI commences.
Marriage value abolition (transforms lease extension costs below 80 years), 990-year statutory extensions, expanded right to manage, ground rent peppercorn extension to existing leases (subject to further consultation), forfeiture reform (likely via the Draft Commonhold and Leasehold Reform Bill 2026, not LFRA itself).
What this means for youTwo regimes overlap right now and you need to track both. One. The RICS Service Charge Residential Management Code 4th edition is in force from 7 April 2026 and is mandatory for any RICS-regulated managing agent. The Code is around 100 pages, addresses demand format in section 14.8, and incorporates LFRA changes that are not yet in statute. Two. The LFRA statutory prescribed demand format is still pending. The government consulted in 2025. Regulations are expected from MHCLG with a transition period. Until those land, Sections 21B, 47/48, and 42 LTA 1985/1987 remain in force in primary law. Practical position for self-managing directors and informal freeholders. You are not strictly bound by the RICS Code, but a non-compliant demand template now invites a Tribunal challenge. The smart move is to align your template with the RICS Code 4th edition now and watch for the LFRA SI when it commences. If you are a leaseholder, the new regime gives you more information by right (annual report, statutory accounts, breakdown of costs). If you are extending a lease, the abolition of marriage value will save serious money when it commences. Not in force yet. Take advice on whether to extend now or wait. Don't confuse LFRA with the Renters' Rights Act 2025, which affects subletting and pet rules and is a separate piece of legislation.
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.
What this means for youIf you sublet your flat, your tenant gains new protections. Section 21 "no-fault" eviction is gone. From May 2026, tenants can request to keep pets and landlords must consider it reasonably. Check your lease subletting clause before you let.
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.
What this means for youNot law yet, but the direction of travel is clear: the government wants to end leasehold and expand commonhold. If you are considering enfranchisement or RTM, this Bill may change the landscape. Worth watching.
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.
Last reviewed: 17 April 2026 · Spot something wrong? Tell us and we'll fix it.
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