Should You Extend Your Leasehold Property? A Complete Guide (2025)
Owning a leasehold property comes with a ticking clock—the shorter the lease, the more it can cost you. With the Leasehold and Freehold Reform Act 2024 now in place, many homeowners wonder: Should I extend my lease now, or wait?
This guide breaks down the pros, cons, and new legal changes to help you decide.
1. Why Lease Extension Matters
A leasehold property’s value and mortgageability depend heavily on its remaining lease term:
- 80+ years: Safe zone (minimal extra costs).
- Below 80 years: “Marriage value” kicks in, dramatically increasing extension costs.
- Below 70 years: Harder to sell or remortgage—some lenders refuse.
Example: Extending a £300k flat with 70 years left could cost £15k-£25k, but waiting until 60 years could double the price.
2. New 2024 Leasehold Reforms – What’s Changed?
The Leasehold and Freehold Reform Act 2024 makes extensions cheaper and easier:
✅ No more marriage value (biggest cost saver).
✅ 990-year extensions (up from 90/150 years).
✅ £0 ground rent (no more annual payments).
✅ No 2-year ownership rule (extend immediately after buying).
But…
⚠️ Most reforms aren’t in force yet (expected late 2025).
⚠️ New calculator rates are still pending (may reduce costs further).
3. Should You Extend Now or Wait?
Extend NOW if…
✔ Your lease is below 80 years (costs rise fast).
✔ You’re selling soon (buyers prefer longer leases).
✔ You need a mortgage (lenders avoid short leases).
WAIT if…
✔ Your lease is 85+ years (no urgency).
✔ You can hold off until 2025-26 (new rates may cut costs).
✔ You’re cash-strapped (but expect higher future costs).
4. How Much Does Lease Extension Cost?
- Premium (to freeholder) – Biggest expense (varies by lease length & property value).
- Legal fees – £2k-£5k.
- Valuation fees – £500-£1.5k.
Under new rules, premiums should drop—but exact savings depend on pending government rates.
5. Next Steps
- Check your lease length (Land Registry or lease document).
- Get a valuation estimate (surveyors or LEASE website).
- Decide: Extend now or wait? (Consider selling plans & finances).
- Consult a solicitor (once reforms fully apply).
Final Verdict
If your lease is under 80 years, extending sooner is safer—even with reforms coming. Above 85 years? You can wait, but monitor the 2025 rate changes.
Need help? The Leasehold Advisory Service (LEASE) offers free guidance.
📌 Got a leasehold dilemma? Comment below!
(Disclaimer: This is general advice—consult a solicitor for your specific case.)
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