Flat Lease Due for Renewal. Given Michael Gove's update today, is it worth holding off?

andre1990

Hi all,

My freeholder is the local council. I currently have around 84 years left on the lease. I have spent £700 so far in admin fees and valuation costs. The council came back with a roughly £7k premium for a 90 year extension and I was happy to continue with this.

However, given Michael Gove's announcement today, is it worth holding off given new legislation affecting leaseholders may come into force by "the end of this year's parliamentary calendar"?

As per MSE's article on this (not sure when last updated), it certainly isn't clear how much the legislation will affect premiums: https://www.moneysavingexpert.com/news/2021/01/shake-up-to-make-it-easier-and-cheaper-for-leaseholders-to-buy-t/

But at a minimum, it appears the legislation would give at least more than a 90 year extension.

Conscious that the longer i leave it the more expensive it will get, but given a significant update seems only round the corner now, is it worth to wait?

user1977

Given the impressive performance of the current government, I don't know why anybody would doubt that they'll achieve their aim of dismantling leasehold tenure within the next 18 months or so.

Jonboy_1984

Bits of this were imminent when we started trying to extend our lease around 2016…

NameUnavailable

Call me a cynic but I think Mr Gove made the promise knowing full well that the Tories days are numbered and they'll probably be out of power before they get any chance to do anything. They can then blame it on Labour or whoever gets in next.

Bonniepurple

I take anything which the government says with a very large pinch of salt.  Especially the current government.  Add in Michael Gove and i think it’s a couple of catering bags needed!

user1977

Bonniepurple said:

I take anything which the government says with a very large pinch of salt.  Especially the current government.  Add in Michael Gove and i think it’s a couple of catering bags needed!

I don't think salt is his white powder of choice...

daveyjp

Don't put off a decision based on a Government announcement of significant structural change.

Starting the process is easy, getting to the end is not so easy, especially with law which has 1,000 years of history behind it.

When you have the likes of the Duchy of Cornwall, Duke of Westminster and dozens of other well connected individuals with billions of pounds of real estate held on leaseholds they are happy to pay barristers millions to fight their corner.

SallyDucati

Back in 2014 I needed to extend the lease on my flat.  There were noises then that things might change soon but I decided to go ahead anyway.  Glad I did as nothing has changed yet and it would have caused me a lot of issues when selling if I hadn’t.

i wouldn’t wait for some possible future changes that are nowhere near happening yet.

andre1990

NameUnavailable said:

Call me a cynic but I think Mr Gove made the promise knowing full well that the Tories days are numbered and they'll probably be out of power before they get any chance to do anything. They can then blame it on Labour or whoever gets in next.

Now that you've raised it, i'm inclined to agree.

Thanks for all the replies, rather than being in limbo and given I don't really have time on my side, I think its most likely worth extending now.