A lease with 84 years left is not simply a number on a document. It can affect saleability, mortgage options and the premium you may pay to extend. That is why lease extension law updates deserve more than headlines. For flat owners, the key question is practical: what rights can you use now, and should you wait for reforms that may change the calculation later?
The Leasehold and Freehold Reform Act 2024 is intended to make leasehold ownership fairer and simpler. But an Act receiving Royal Assent does not mean every provision takes effect immediately. Different measures require commencement regulations, supporting detail and, in some cases, further policy decisions. Acting on the wrong assumption can be costly, particularly where a lease is approaching 80 years.
The lease extension law updates that matter now
The most immediate change for many qualifying leaseholders is the removal of the previous two-year ownership requirement before using the statutory lease extension process. This means a buyer who qualifies can potentially take action sooner after purchasing a flat, rather than waiting two years before serving notice.
That is a meaningful change, but it does not remove the need for careful planning. A statutory lease extension still involves a formal process, strict notice requirements, valuation evidence and legal deadlines. A mistake in the notice or an unrealistic premium offer can create delay, extra professional costs or a failed claim.
The existing statutory route remains the practical framework for many flat owners. Subject to eligibility, it provides a right to add 90 years to the current lease term and reduce ground rent to a peppercorn – effectively nil. For a leaseholder with a short lease or an escalating ground rent clause, that combination can materially improve the long-term position of the property.
The 80-year point still needs attention
One reform proposal that attracts particular interest is the removal of marriage value from lease extension calculations. Marriage value is the additional value created when a short lease is extended, and under the current established framework it can be payable once a lease has fallen below 80 years.
The policy direction is clear: reform is intended to reduce unfairness in the valuation system. However, leaseholders should not assume that every proposed valuation change is already in force or that it will apply to an individual case without qualification. Until the relevant provisions are commenced and the applicable valuation rules are clear, the 80-year threshold remains a serious commercial consideration.
If your lease is close to 80 years, waiting for a future change is a judgement call, not a guaranteed saving. During the wait, the term continues to reduce. That can increase the premium under current rules, limit buyer interest and complicate a remortgage. The right answer depends on your likely timescale for selling, your lender position, the remaining term, ground rent and the likely cost of acting now.
What is still pending under leasehold reform?
The 2024 Act contains major reforms designed to reshape the extension process. These include the intention to provide a standard 990-year extension for qualifying houses and flats, with ground rent reduced to a peppercorn. For flat owners, a 990-year term would remove the need to revisit lease length during normal ownership and would be a substantial improvement on the current additional 90 years.
The Act also provides for changes to valuation, including the intended removal of marriage value and restrictions on the treatment of certain ground rents when calculating premiums. These are potentially significant changes, especially for leases under 80 years and leases with high or escalating rents.
Yet potential is not the same as a live entitlement. The detailed commencement position matters. A leaseholder considering an extension should distinguish between three things: rights already available, provisions that have been passed but are not yet in force, and broader leasehold reform proposals that remain subject to future legislation or consultation.
For landlords and professional asset managers, this distinction matters too. Reform may alter future premium assumptions and administrative processes, but portfolios still need to be managed against the law that applies when a claim is made. Clear records, responsive notice handling and consistent valuation instructions remain essential.
Should you extend now or wait?
There is no blanket answer. A flat with 60 years remaining faces a different decision from one with 93 years remaining. Equally, an owner planning to sell next year has different priorities from a buy-to-let investor holding for the long term.
Extending now can provide certainty. You can establish the premium using the current legal framework, remove ground rent through the statutory route and prevent further lease decay. It may also make the flat easier to finance or market. The trade-off is that a future reform could have produced a lower premium, although no one should base a property decision on an unconfirmed implementation date or outcome.
Waiting may be reasonable where the lease remains comfortably long, there is no immediate sale or refinancing need, and the financial case for waiting is strong. But the decision should be reviewed rather than left on a mental to-do list. Lease length, market conditions and the legal position all move over time.
A negotiated, or informal, extension can also be an option. It may be faster and can offer flexibility where both parties want an agreement. However, it does not automatically deliver the same protections as a statutory extension. A landlord may propose a shorter additional term, a revised ground rent structure or other clauses that look attractive at first but reduce the long-term benefit. The price is only one part of the deal. The new lease terms deserve just as much scrutiny.
Getting the process under control
A good extension starts with facts, not estimates passed around in a chain of emails. Check the exact unexpired term, ground rent provisions, title details and whether the property and ownership meet the statutory eligibility criteria. If you bought recently, the removal of the two-year rule may improve your options, but it does not replace the need to verify eligibility.
The next step is a credible valuation. Premiums are not fixed by a simple online calculator. They can turn on lease length, property value, ground rent, review clauses, relativity evidence and the assumptions required by the legislation. An experienced RICS-registered valuer can provide a reasoned view of the likely premium and a sensible opening figure for a statutory notice.
Once a formal claim begins, deadlines matter. The landlord must respond in the required form and within the required period. Negotiations then focus on premium and terms, with tribunal determination available if agreement cannot be reached. It is a structured process, but it can feel fragmented when the leaseholder is coordinating valuation, legal work, notices and landlord contact alone.
That is where a managed approach can reduce the burden. Lease Plus 90 brings the key stages into a clearer process, helping leaseholders and landlords deal with extension work efficiently while retaining visibility over cost, progress and decisions. The aim is not to make a legal matter sound simple when it is not. It is to make the route through it more controlled.
A sensible next move for landlords
Landlords should not treat reform as a reason to pause all lease extension activity. Outstanding enquiries, statutory notices and expiring deadlines still require proper handling. Delays can increase disputes, frustrate leaseholders and create avoidable workload for managing agents and internal teams.
A practical portfolio review can identify leases approaching 80 years, notices that need a response and ground rent clauses likely to be affected by future reform. It also creates an opportunity to standardise instructions, document decisions and avoid each extension becoming a separate administrative project. Efficient asset management is not about resisting leaseholders’ rights. It is about handling those rights consistently and commercially.
Keep your decision based on the live position
Leasehold reform is moving, but property decisions cannot be put on hold indefinitely. If your lease is short, close to 80 years, or likely to be scrutinised by a buyer or lender, obtain current advice and a proper valuation before deciding to wait. A clear view of the law in force today, alongside the possible impact of future change, gives you something far more useful than speculation: control over your next step.
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