Another lease question

Altior

• Property completed Oct 2010
• S/O 99 year lease signed July 2011
• Staircase completed May 2021
• Circa 60% LTV o/s mortgage
• Pencilled plan to stop working, at least full time, in around 7 years

So I believe this makes it 86 years left on the existing lease.

As far as know the legislation hasn't changed, but changes in this legislation have been in the pipeline for several years.

What are the best options here, iyo? I don't plan to sell or move at any time soon. But as I live in the south east and have no family or beneficiaries, I could potentially sell up when I quit working, let it out and live elsewhere in the country or abroad, or equity release.

Not looking for Mystic Megs ha! I realise there's not much certainty, just some kind of insight/pointers from potentially posters clued up in the property world, and closer to the weeds of likely legislation. I feel like at 86 years, the time for putting the decision making off is approaching, as I understand it, 80 years is the cliff edge. It wouldn't be the end of the world if I did nothing, but it would likely significantly limit my future options. I suppose I could just about wait it out in this parliament, maximum 4.5 years. Not much point if there is little prospect of new legislation being implemented....

user1977

Altior said:

So I believe this makes it 86 years left on the existing lease.

Why merely "believe"? Don't you have a copy of the lease so you can check the dates?

Altior

user1977 said:

Altior said:

So I believe this makes it 86 years left on the existing lease.

Why merely "believe"? Don't you have a copy of the lease so you can check the dates?

I know it's 99 years and I know when I signed it. I suppose there's a remote chance in my mind that the timer started from the building completion date as I was the first occupier but not the first owner (ie the HA owned it from 2010), but not likely. It must have been on the market as a 99 year lease for nearly a year. 

user1977

They are often backdated a bit (to e.g. when the first property in the development was completed) so you would be best to check.

youth_leader

If you can't find your lease to check when your lease began, you can order a paper copy here - I need a copy of my lease - how do I do that? · HM Land Registry

Altior

Quite odd actually!

eddddy

Altior said:

As far as know the legislation hasn't changed, but changes in this legislation have been in the pipeline for several years.

The Leasehold and Freehold Reform Act was passed in May 2024 - it plans some changes to lease extensions.

The changes were expected to come into effect in late 2025/26, but it sounds like they might be delayed.

Assuming the changes go through as planned...

• You won't have to pay the freeholder's costs - which might save you around £2k
• But the price of your lease extension might actually be higher
• (But your lease would be extended to 990 years, instead of adding 90 years)

Altior

eddddy said:

Altior said:

As far as know the legislation hasn't changed, but changes in this legislation have been in the pipeline for several years.

The Leasehold and Freehold Reform Act was passed in May 2024 - it plans some changes to lease extensions.

The changes were expected to come into effect in late 2025/26, but it sounds like they might be delayed.

Assuming the changes go through as planned...

• You won't have to pay the freeholder's costs - which might save you around £2k
• But the price of your lease extension might actually be higher
• (But your lease would be extended to 990 years, instead of adding 90 years)

Thanks eddddy. Does mean there's a genuine prospect of the 80 year 'cliff edge' being flattened in the anticipated changes to lease extensions? If that's the case, I may well take my chances and sit it out.

eddddy

Altior said:

Thanks eddddy. Does mean there's a genuine prospect of the 80 year 'cliff edge' being flattened in the anticipated changes to lease extensions? If that's the case, I may well take my chances and sit it out.

That was the government's plan. i.e. Get rid of marriage value on leases shorter than 80 years

But groups of freeholders have threatened to take the government to court, on the basis that the changes infringe their human rights.

So who knows how it will pan out?

Altior

Thanks again eddddy. I'm just trying to work on the balance of probabilities really. Not much fun being on the bubble!