Recently the Government has said it proposes to make leasehold ownership, including leasehold extensions, ‘easier, faster, fairer and cheaper’ and hopes to bring forward the necessary legislation before the next general election in 2024, although no timescale has been confirmed. Changes relating to lease extensions include:
- a right to extend leases more than once;
- rights to extend for a much longer term, up to 990 years;
- a change in the basis of valuing any premium, including capping ground rent and abolishing marriage value (the difference in a leasehold property's value before the 80 year lease is extended and after), and;
- introduction of an online calculator to simplify calculating the premium.
The current proposals lack detail, but the possible savings for those wishing to extend their lease could be significant under the new legislation. Removing marriage value from the calculation of the premium alone could make it much cheaper to extend a short lease.
B P Collins’ residential property lawyers are experienced in leasehold extensions and can explain what is involved both now and in the future should legislation change, and help you assess all the advantages and disadvantages.
Whatever stage your plans are at, however many years are left on your lease, talking things through with our team will help you make the right decision.
B P Collins will provide further updates on lease reforms as more details become available.