Should I extend my lease or wait until the Leasehold Reform Act passes?—The Times
Partner Shabnam Ali-Khan and trainee Kerrina Gray have been featured in The Times Home Help section responding to a reader who is selling their property and wants to know the best time to take action.
Shabnam and Kerrina explain that while upcoming leasehold reforms under the Leasehold and Freehold Reform Act 2024 could make lease extensions cheaper by removing marriage value and capping ground rent, these changes are not yet in force and face legal challenges that may delay them. Given this uncertainty and the fact that a lease below 80 years can significantly reduce a flat’s value and deter buyers, they advise Ian to seek valuation advice and consider extending the lease before selling rather than waiting for the reforms to take effect.
Ultimately, your decision will depend on your personal circumstances, timing and appetite for risk. We strongly advise obtaining valuation advice regarding premiums as well as speaking to local estate agents. The property market in your area will also be a relevant factor. It may be sensible to extend the lease before marketing the flat as any valuation reforms may be many months, if not years, away.
The full article is available to view on The Times by subscription only.
About Shabnam and Kerrina
Partner Shabnam Ali-Khan specialises in lease extension and enfranchisement matters, primarily under the Leasehold Reform Housing and Urban Development Act 1993 working with a variety of clients ranging from high-net-worth individuals and companies to individual leaseholders and investor landlords.
Kerrina Gray is a trainee, formerly in the property litigation team.
