The Leasehold Advisory Service has launched a free online tool enabling leaseholders to check their remaining lease length and estimate how much an extension could cost.
Available to leaseholders in England and Wales, the service combines LEASE’s existing lease-length checker and extension calculator within a single platform.
Users receive personalised information about their remaining lease term, an estimated extension cost and guidance on the options they may need to consider. Results can also be downloaded or sent by email.
The launch follows analysis suggesting that almost one in 12 residential leases in England and Wales has between 80 and 90 years remaining.
LEASES APPROACHING CRITICAL POINT
Leaseholders are often advised to consider their options before a lease falls below 80 years because waiting can increase the cost of an extension under the current system.
Lease length can also affect a property’s value, marketability and its owner’s ability to secure a mortgage or remortgage.
LEASE’s analysis, processed by the Open Data Institute, found that 41% of the leases identified with between 80 and 90 years remaining were in London. The South East accounted for 16% and eastern England for 11%.
REFORMS YET TO TAKE FULL EFFECT
The Government has set out measures intended to make extending a lease or purchasing a freehold easier and cheaper through the Leasehold and Freehold Reform Act 2024.
However, some provisions have yet to come into force and are expected to be implemented in stages. Leaseholders must therefore continue making decisions based on the rules currently in operation.
EARLY CHECKS
Kion Ahadi (main picture, inset), CEO of the Leasehold Advisory Service, says: “Our new tool gives leaseholders a simple way to understand where they stand. By bringing together lease length information, estimated extension costs and practical guidance in one place, we’re making it easier for people to make informed decisions about their home.
“Our analysis suggests that around one in 12 residential leases have between 80 and 90 years remaining. Many leaseholders are unaware of the importance of their lease length until they come to sell, remortgage or consider extending their lease. Checking your lease early can help you understand your options and avoid making decisions under unnecessary time pressure.”
