A flat with 79 years left on its lease can lose tens of thousands of pounds in value the moment it drops below the 80-year mark, simply because of how marriage value is calculated under current law. That single number explains why the phrase "Commonhold and Leasehold Reform Bill before Christmas Notting Hill leaseholders" has become one of the most searched terms among flat owners in W11 this autumn. On 7 October 2026, LEASE (the government-funded Leasehold Advisory Service) confirmed that the Prime Minister intends to bring the long-awaited Bill to Parliament before Christmas. For leaseholders across Notting Hill, Holland Park and Kensington, the announcement raises as many questions as it answers.
This article sets out exactly what has and has not been confirmed, what it means for owners with short leases, and why current law still applies right now.
Key Takeaways
- The government says it intends to introduce the Commonhold and Leasehold Reform Bill before Christmas 2026, but the final contents are not yet confirmed.
- A draft Bill (January 2026) proposed commonhold as the default tenure for new flats, capped ground rents, and a new lease enforcement system to replace forfeiture.
- Separately, the government plans to cap certain permission and administration fees and introduce licensing for property agents, subject to consultation.
- The 2024 Act's lease extension and freehold purchase price changes, including abolishing marriage value, are NOT yet in force. Current law still applies.
- A valuation rates consultation closes 21 October 2026, so Notting Hill leaseholders with short leases should get professional advice now rather than wait indefinitely.
Where the Commonhold and Leasehold Reform Bill Before Christmas Stands for Notting Hill Leaseholders
According to LEASE's update of 7 October 2026, the Prime Minister has said the government intends to introduce the Commonhold and Leasehold Reform Bill to Parliament before Christmas. This followed scrutiny of a draft Bill published in January 2026, which was examined in detail by the Housing, Communities and Local Government Committee.
It is important to be precise about what this means. An intention to introduce a Bill is not the same as Royal Assent, and it is certainly not the same as commencement of new rules. No dates have been set for either of those later stages, and this article will not speculate about them. What has been confirmed is simply that the government wants the Bill before MPs this year.
For Notting Hill leaseholders, the practical message is: change is coming, but the timetable for it actually affecting your lease, your service charge, or your ground rent remains open.
Why the Timing Matters: What the Draft Bill Proposed
The draft Bill examined by the Select Committee contained three headline ideas, none of which are yet law:
- Commonhold as the default tenure for new flats, replacing the leasehold model that has dominated London flat ownership for generations.
- Capped ground rents, addressing one of the most contentious cost issues for existing leaseholders.
- A new lease enforcement system to replace forfeiture, the mechanism that currently allows a freeholder to terminate a lease for breach of covenant.
LEASE has been clear that the final contents of the Bill are not yet confirmed. The Committee's scrutiny may well lead to amendments before anything reaches Parliament, and Parliament itself may amend further. Notting Hill leaseholders should treat these three points as direction of travel, not settled fact.
"An intention to introduce a Bill before Christmas is a statement of parliamentary timetable, not a guarantee of what the law will eventually say."
Fees, Agents, and the 29 September Announcements
Separately from the main Bill, the government announced on 29 September 2026 two further measures that will matter to many Notting Hill blocks, particularly those managed by third-party agents:
- Capping permission and administration fees. The proposal, subject to consultation, would limit charges for things leaseholders routinely encounter: pet permission requests, consent for minor alterations, provision of documents (for example for a sale), and recording a change of mortgage lender on the title.
- Independent regulation of property agents. This would introduce licensing and qualification requirements for managing agents, a sector that has operated with relatively light-touch oversight.
Both measures are still at consultation stage. Neither is in force. But for leaseholders who have faced unexplained fees of several hundred pounds for a simple administrative task, this signals where regulatory pressure is heading.
The 2024 Act Is Not Yet in Force: Current Law Still Applies
This is the point most frequently misunderstood, and it matters enormously for anyone considering a lease extension now.
The Leasehold and Freehold Reform Act 2024 includes changes to how lease extension premiums and freehold purchase prices are calculated, including the abolition of marriage value for leases with fewer than 80 years remaining. None of this is yet in force.
The government has said the forthcoming Bill must first fix technical problems identified in the 2024 Act, and that valuation rates need to be set before the new pricing system can operate. Two consultations are directly relevant:
| Consultation | Status |
|---|---|
| Valuation rates (deferment and capitalisation rates) | Closes 21 October 2026 |
| Legal and valuation costs | Closed 23 September 2026 |
Until the valuation rates are settled and the technical fixes made, current law applies. That means marriage value is still payable on leases under 80 years, and the existing statutory formula under the Leasehold Reform, Housing and Urban Development Act 1993 remains the basis for calculating a lease extension premium.
Market Snapshot for Prime West London
Context matters when weighing up a lease extension decision. Knight Frank reported on 5 October 2026 that prime central London prices rose 0.3% in the three months to September, but remain down 2% over the year and 22% below their August 2015 peak. Nationwide separately reported that flat prices nationally were broadly unchanged in September. Notting Hill's market is not booming, but it is not collapsing either. That relative stability gives leaseholders room to make a considered decision rather than a rushed one.
Short-Lease Owners (Under 80 Years): Act Now or Wait?
This is the single most consequential decision facing Notting Hill flat owners right now.
The case for acting now:
- Marriage value continues to apply under current law to leases under 80 years, and the premium only grows as the lease shortens further.
- There is no confirmed date when the 2024 Act's pricing changes will come into force, so waiting could mean paying marriage value for months or years longer than hoped.
- Mortgage lenders typically require a minimum unexpired term (often 70-85 years at the end of the mortgage term), so a short lease can restrict buyer pools and depress sale value now.
- A RICS-qualified valuation locks in today's figures, giving certainty for negotiation or sale.
The case for waiting:
- If the Bill passes and commences with the 2024 Act's pricing reforms intact, qualifying leaseholders could pay less overall, since marriage value would be abolished.
- Owners not planning to sell or remortgage soon have more flexibility to monitor developments.
The honest answer: for leases already under 80 years, or approaching that threshold within the next two to three years, obtaining a professional valuation and opening negotiations now is generally the safer course. Delay has a real cost under current law, whereas future savings remain unconfirmed and undated.
How a RICS Lease Extension Valuation Works
A RICS-qualified valuer assesses a lease extension premium using several core inputs:
- Unexpired lease term, the fewer years remaining, the higher the premium, especially under 80 years.
- Ground rent, existing ground rent terms affect the "value" being surrendered to the freeholder.
- Freehold value of the flat, based on comparable evidence in the local market.
- Relativity, the percentage relationship between a leasehold flat's value and its freehold value at the given term.
- Deferment rate and capitalisation rate, statutory percentages used to discount future value back to present terms (the subject of the consultation closing 21 October 2026 under the new regime, though current rates still apply today).
- Marriage value, under current law, split 50/50 between leaseholder and freeholder for leases under 80 years.
A qualified surveyor combines these into a formal premium calculation, which forms the basis of a Section 42 notice (for flats) and subsequent negotiation with the freeholder.
Commonhold Conversion: What It Could Mean for Notting Hill Blocks
If commonhold becomes the default tenure for new flats, it would not automatically convert existing leasehold blocks in Notting Hill. Under the draft Bill's direction, commonhold conversion for existing buildings would likely remain voluntary and require agreement among flat owners within a block, replacing the freeholder-landlord structure with owner-run management via a commonhold association.
For period conversions and purpose-built mansion blocks typical of W11, commonhold conversion raises practical questions: shared structural responsibility, service charge budgeting without an external freeholder, and unanimous or majority consent requirements. These details were not settled in the draft Bill, and leaseholders should not assume conversion is imminent or compulsory.
What Notting Hill Leaseholders Should Do Before Christmas 2026
- Check your unexpired lease term. If it is near or under 80 years, seek a RICS valuation without delay.
- Monitor, but do not wait indefinitely for, the Bill. No commencement date exists yet.
- Review agent fees against your lease terms; the 29 September proposals may eventually cap what can be charged, but are not yet binding.
- Keep records of any permission or administration fees charged, in case future caps apply retrospectively to ongoing disputes.
- Speak to a qualified surveyor and solicitor together before serving any statutory notice.
Frequently Asked Questions
Has the Commonhold and Leasehold Reform Bill before Christmas become law for Notting Hill leaseholders?
No. As of 11 October 2026, the government has only stated an intention to introduce the Bill to Parliament before Christmas 2026. It has not received Royal Assent and has no commencement date.
Does marriage value still apply to my lease extension?
Yes, under current law marriage value still applies to leases with fewer than 80 years remaining. The 2024 Act's abolition of marriage value is not yet in force.
Should I extend my lease now or wait for reform?
If your lease is under 80 years, most surveyors recommend acting under current law now, since delay has a known cost and future savings remain unconfirmed and undated.
Will service charge administration fees be capped?
The government announced plans on 29 September 2026 to cap certain permission and administration fees, but this is subject to consultation and not yet in force.
What is happening with the valuation rates consultation?
A consultation on valuation rates (used in lease extension calculations) closes 21 October 2026. Until new rates are confirmed and in force, existing statutory rates continue to apply.
Could my block be forced into commonhold?
Not based on current proposals. The draft Bill focused on commonhold as default for new flats; conversion of existing leasehold blocks would likely remain a voluntary, owner-led decision.
Conclusion
The Commonhold and Leasehold Reform Bill before Christmas is a significant moment for Notting Hill leaseholders, but it remains a statement of intent rather than a change in law. Commonhold defaults, ground rent caps, and a new enforcement system to replace forfeiture were all proposed in January's draft Bill, alongside separate plans to cap administration fees and regulate property agents. None of this is yet in force, and the 2024 Act's marriage value abolition still awaits technical fixes and valuation rates due later this month.
For owners with leases under 80 years, the safest course is to obtain a RICS-qualified lease extension valuation now, under current law, rather than wait for a reform timetable that remains unconfirmed. Notting Hill Surveyors can provide independent, chartered valuation advice tailored to your specific lease, building and circumstances. Contact our W11 office to discuss your position before the law moves again.