Under the current legislation, leaseholders generally have the right to extend a lease by 90 years, but must pay “marriage value” if fewer than 80 years remain. The Leasehold and Freehold Reform Act 2024, which achieved royal assent in May 2024, abolishes marriage value, allows lease extensions of up to 990 years, and removes the prior two-year ownership wait time. Many provisions will take effect in 2025/26, with early implementation already underway.
Leaseholders have the statutory avenue to form an RTM company to take over block management—even without landlord approval—offering greater control over day-to-day estate operation.
The 2024 Act mandates clearer communication on service charges, including standardized billing, restrictions on legal cost recoveries, and better eligibility for cost challenges at tribunal.
Even though not specific to London City Island, the Leasehold Reform (Ground Rent) Act 2022 ensures that new leaseholds now carry only a peppercorn ground rent, virtually eliminating escalating rent burdens for future buyers.
The London City Island & Goodluck Hope Leaseholders' & Residents' Association offers representation, advocacy, and a unified voice in discussions with the developer. Operated by local residents and run transparently, it’s a vital vehicle for accountability.
| Right / Reform | Impact on Leaseholders |
|---|---|
| Lease Extension (990 yrs, no costs) | Long-term security and property value protection |
| Right to Manage (RTM) | Control over building management and service quality |
| Service Charge Transparency | Fairer charges and simplified dispute resolution |
| Ground Rent Reform | Prevents future leaseholds from unfair escalating rents |
| Leaseholders’ Association | Collective action strengthens leaseholder influence |
Review your lease length—if under 80 years, plan a lease extension under the new terms when enacted.
Engage with the Leaseholders' & Residents' Association for local mediation and coordination.
Monitor reform rollout, particularly in 2025/26, for active implementation of new rights.
Use RTM if needed, to gain control of building upkeep and reduce costs.
Ask for transparent service charge bills—you have the right to receive and challenge these with ease.
Seek professional guidance from leasehold solicitors or advisors to position effectively for legal changes.
Need help navigating your leaseholder rights at London City Island? Fraser Bond provides tailored advice, strategic planning, and full support—whether you're extending your lease, reorganising management, or ensuring transparency. Visit FraserBond.com to learn how we can assist you.
