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.
On Friday 24 May 2024, the Leasehold and Freehold Reform Act received Royal Assent. The Act delivers a package of reforms, including to enfranchisement, the Right to Manage, access to redress and the way service charges work. It also includes measures to ban new leasehold houses and transform the consumer rights of homeowners on freehold estates.
Details on commencement of the Leasehold and Freehold Reform Act are set out in Section 124. A small number of provisions come into force on 24 July, two months after Royal Assent. These are:
- measures relating to the remedy for rentcharge arrears;
- the repeal of Section 125 of the Building Safety Act 2022;
- new procedures under the 2022 Act where an insolvency practitioner is appointed for a higher-risk or relevant building;
- a measure which allows the recovery of legal and other professional service costs via the service charge, where they are incurred by a resident management company or right to manage company in connection with obtaining remediation contribution orders under that 2022 Act.
The remainder of the Leasehold and Freehold Reform Act 2024 will come into effect at the discretion of the next Government.
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
