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If you own a leasehold flat, you may already know that as your lease gets shorter, your property’s value can drop and it becomes harder to sell or remortgage. Extending your lease puts that right — and the government has promised reforms to make the process cheaper and simpler.
But those changes are not fully in place yet. So, should you extend now or wait? This guide sets out the key points in straightforward terms.
No more waiting two years: You can now extend your lease as soon as you become the registered owner of the property following your purchase, instead of waiting for two years of ownership.
Mixed-use buildings: It may now be easier for people in blocks that have shops or offices as well as flats to extend.
The proposed big reforms, not yet active, include:
Standard lease extensions going up to 990 years.
Abolishing “marriage value” (a costly extra charge when leases drop below 80 years).
New ways of calculating what you pay, which could bring premiums down.
The government has said these are on the way, but hasn’t given a start date. It could still take years before everything is in force.
If your lease is under 80 years: Extending now avoids further value loss. Waiting might save money if marriage value is abolished, but there’s no guarantee when that will happen.
If you’re in the middle (80–90years): This is a grey area. It may be worth getting a quote now and comparing it to what reform might bring. · If your lease is over 90 years: You’re in a comfortable position. You may decide to wait for reforms, as your flat is still mortgageable and marketable.
Don’t assume change will be quick: Even if reforms are agreed, they may take a long time to become law.
Selling or remortgaging soon? You may not have the luxury of waiting. Buyers and lenders are cautious about short leases.
Lender consent: If you have a mortgage, your bank will need to approve the new lease and sign the paperwork. They occasionally charge an admin fee for this.
Costs: Even if reforms reduce the premium, you’ll still need to pay for legal work, Land Registry fees, and lender consent.
Group action: If you’re in a block, organising lease extensions together can reduce costs and keep everyone on the same footing.
Lease length keeps ticking down — every year makes your lease shorter and potentially more expensive.
If you fall under 80 years before reforms arrive, you could still be stuck paying marriage value if you need to extend under the current rules.
Delays are common. Even once laws are passed, the fine print takes time.
We deal with lease extensions every day, both under the current rules and in preparing for reforms. We can:
Give you a clear picture of what your extension would cost now.
Talk through the risks and benefits of waiting.
Handle all the paperwork, including lender consent and Land Registry registration.
Work with groups of leaseholders in the same block, often at a discounted rate.
Leasehold reform is on the way, but it’s not here yet. If your lease is already short, waiting could be risky. If you have more time left, you may be able to hold off and see what the changes bring. The best decision depends on your personal circumstances — and getting advice early gives you the widest choice.
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