We do not know when the changes will come in, or exactly what will change, so we cannot be certain of the best thing for you to do.
If you have between 80 and 82 years left on your lease then you should probably extend now. Waiting until your lease has less than 80 years left could make your lease extension much more expensive, because of marriage value.
If you have more than 82 years on your lease then you could wait for the changes, as they might make a lease extension cheaper. But see above about what to do when your lease reaches 82 years.
If you have less than 80 years remaining then you could wait for the reforms, as they might make a lease extension cheaper. But it is really important to know that if the changes do not come in when they are expected then you could end up paying more than if you just extended now. A short lease could also make it more difficult to sell or remortgage your property.
If you have a pressing reason to extend now, for example you are remortgaging or selling your property, or if you have already started getting a lease extension, then there might be several factors that will affect your decision. You should contact LEASE to speak with one of our advisers regarding your individual situation.
The Government has said that they will legislate before May 2024, but we do not know when that bill would pass into law. The legislation will:
- Reform the process of enfranchisement valuation used to calculate the cost of extending a lease or buying the freehold.
- Abolish marriage value.
- An online calculator will simplify and standardise the process of enfranchisement.
More information you might find useful:
- Government reforms to make it easier and cheaper for leaseholders to buy their homes
- How can I extend my lease?
- Lease Extension – Getting Started
- Lease Extension Calculator
- More Frequently Asked Questions on Lease Extension
Still not found the answer?
Contact LEASE to have your enquiry dealt with by one of our experienced advisers