The Leasehold and Freehold Reform Act 2024 (LFRA 2024) - to extend or no?

MigsyBigsy

Hello all,

I am currently thinking of extending my lease (which is on the very of hitting 80yrs remaining) and have contacted a solicitor.

However the The Leasehold and Freehold Reform Act 2024 (LFRA 2024) was given RA in May. Question is, should I wait till it becomes secondary legislation (no date has been provided) or just instruct the solicitors to go ahead? - its not cheap to extend.

thank you in advance

Miguel 

eddddy

I think you just have to make your own best guess.

Things to consider, in relation to the act and statutory lease extensions...

• The new act is planned to get rid of marriage value on leases with less than 80 years. That would remove the sudden increase in cost, when the lease hits 80 years...

• ... but some freeholders are threatening to take the government to court to challenge that, on the basis that it infringes their human rights. So the abolishment of marriage value might not happen.

• Currently, leaseholders have to pay their freeholder's legal and valuation fees.  The act is planned to make freeholders responsible for their own fees. That might save you about £2k,

• Apart from marriage value, the cost of lease extensions might generally increase, because of changes in the discount rate (or inflation rate) used to calculate lease extension costs.