Lease Extensions: Why Acting Before the Upcoming Reforms Could Save You Thousands

The leasehold landscape is changing. Proposed reforms to the system—aimed at making lease extensions cheaper and more accessible—are widely anticipated. However, for current leaseholders, there is a critical point often being overlooked:

Waiting for reform could be financially risky. Acting now may be the more certain and cost-effective route.

 The Current Position (2026)

Under the Leasehold Reform, Housing and Urban Development Act 1993, qualifying leaseholders are entitled to:

• A 90-year lease extension

• Ground rent reduced to a peppercorn

• A defined valuation framework

• The right to refer disputes to the Tribunal

While the system is technical, it is well-established. Valuation methodology, relativity, deferment rates, and case law are all understood and evidenced.

In short: there is certainty.

What’s Changing?

The UK Government has indicated reforms that may include:

• Removal (or reduction) of marriage value

• Standardisation of valuation rates

• Simplification of the extension process

• Potential changes to qualification criteria

These changes are likely to come through updates to legislation such as the Leasehold and Freehold Reform Act 2024.

However, the key issue is this:

The detail, timing, and transitional arrangements remain unclear.

Why Waiting Could Be a Mistake

1. Lease Length Is Always Reducing

Every year that passes reduces your lease term—and increases your premium.

Once a lease falls below 80 years, marriage value becomes payable.

This can significantly increase costs.

• At 82 years: extension might cost £12,000–£18,000

• At 78 years: the same flat could be £20,000–£35,000+

The difference is often substantial.

2. Reform May Not Benefit Every Leaseholder

Although reforms aim to reduce costs, there is no guarantee that:

• They will apply retrospectively

• They will benefit all property types equally

• The valuation outcome will be lower in every case

In some scenarios, particularly where relativity or deferment rates are adjusted, premiums could increase for certain leases.

3. Timing Risk

Even if reforms are favourable:

• Implementation could take 12–24+ months

• Secondary legislation and valuation guidance will follow

• There may be backlogs and delays in processing claims

During this time, your lease continues to shorten—and your premium increases.

4. Loss of Control

Under the current statutory framework, leaseholders have:

• A clear legal route

• Defined timelines

• Established negotiation principles

Delaying may mean entering a new, untested system, where outcomes and processes are less predictable.

Certainty vs Speculation

From a valuation perspective, the decision is simple:

• Act now = Known framework, measurable premium, controlled process

• Wait = Unknown legislation, uncertain valuation basis, timing risk

For many leaseholders—particularly those with leases approaching or below 85 years—the cost of waiting can outweigh any potential legislative benefit.

When You Should Act Immediately

You should strongly consider progressing now if:

• Your lease is below 90 years

• You are approaching the 80-year threshold

• You plan to sell or refinance

• Your property is mortgage-sensitive (many lenders restrict below 80–85 years)

Professional Advice Is Critical

Lease extension valuation is highly technical. It requires:

• Analysis of relativity and market evidence

• Consideration of Tribunal decisions

• Strategic negotiation with the freeholder

A Red Book compliant valuation ensures you are properly advised before serving notice or entering negotiations.

Final Thought

The narrative around reform suggests “waiting might make things cheaper.”

In practice, time is one of the biggest drivers of lease extension cost.

In most cases, certainty today is more valuable than speculation about tomorrow.

Need Advice on Your Lease Extension?

At Olden Property, we specialise in:

• Lease extension valuations

• Section 42 notice advice

• Negotiation with freeholders

• Tribunal and expert witness work

If you’re unsure whether to act now or wait, we can model both scenarios and advise on the most cost-effective strategy.