The much-anticipated leasehold reforms have been delayed again, leaving flat owners uncertain about the future. While early promises hinted at quick progress, recent rumours suggest new legislation might still be years away. In response, we’ve seen a surge in October 2024, as more flat owners are moving forward with lease extensions and enfranchisements under current legislation rather than waiting.
The financial impact of these delays is significant. For leases exceeding 80 years and calculated without marriage value, costs are rising. Over just five years, premiums can increase by as much as 27.7%. And for those who’ve been waiting since 2018 and plan to hold out another four years (a delay of 10 years) in hopes of better terms, the premium will have jumped by 63% at current rates. The longer the wait, the steeper the cost—making a strong case for action today rather than holding out for future savings.
For flat owners, the focus is shifting toward working within the existing system. Future reforms may promise lower premiums and simplified processes, but the cost of waiting could quickly outweigh any potential benefits. This past month, we’ve been helping clients who recognize this shift and want to secure their position now rather than later.
If you’re a flat owner weighing leasehold reform, it might be time to reassess your strategy. With so many unknowns around the new legislation’s timeline, taking advantage of today’s options could be a savvy long-term move.
