LEASE launches new tool to help leaseholders check their lease length and estimate extension costs

The Leasehold Advisory Service (LEASE) has launched a new free online tool to help leaseholders in England and Wales understand how much time is left on their lease, estimate the cost of extending it and understand what action they may need to consider.

The new lease extension calculator brings together LEASE's existing lease length checker and lease extension calculator into a single, easier-to-use service. It provides leaseholders with personalised information about their remaining lease term, an estimate of lease extension costs, and guidance on the options available to them. Users can also download or email their results for future reference.

The launch comes alongside new analysis by LEASE, based on residential lease records in England and Wales, which estimates that almost 1 in 12 (8%) of residential leases have between 80 and 90 years remaining.

As leases approach 80 years remaining, leaseholders often begin to consider whether extending their lease is right for them, as waiting longer can affect the cost of an extension under the current system.

The analysis – which was processed by the Open Data Institute (ODI) – also found regional differences. Of the leases identified with between 80 and 90 years remaining, these were most commonly found in London (41%), the South East (16%) and Eastern regions (11%), reflecting the higher levels of need for lease extensions in those areas.

For many leaseholders, lease length can affect the value of their home and make it more difficult to sell or remortgage.

The government has set out reforms intended to make it easier and cheaper for leaseholders to extend their lease or buy their freehold, including measures in the Leasehold and Freehold Reform Act 2024. Some measures in the Act are not yet in force and will be introduced in stages. In the meantime, leaseholders may still need to make decisions based on their current lease length and circumstances.

“Our new tool gives leaseholders a simple way to understand where they stand. By bringing together lease length information, estimated extension costs and practical guidance in one place, we're making it easier for people to make informed decisions about their home.

“Our analysis suggests that around one in 12 residential leases have between 80 and 90 years remaining. Many leaseholders are unaware of the importance of their lease length until they come to sell, remortgage or consider extending their lease. Checking your lease early can help you understand your options and avoid making decisions under unnecessary time pressure.”