The Leasehold Advisory Service has launched a free online tool enabling leaseholders to check their remaining lease length and estimate the cost of an extension.
The service combines LEASE’s existing lease-length checker and extension calculator, providing personalised results and guidance in one place.
Users in England and Wales can download or email their results, allowing them to retain the information when seeking mortgage, valuation or legal advice.
The launch follows analysis suggesting that almost one in 12 residential leases have between 80 and 90 years remaining.
LONDON ACCOUNTS FOR 41%
Of the leases identified within the 80-to-90-year range, 41% were in London, 16% in the South East and 11% in the East of England.
The analysis was based on residential lease records processed by the Open Data Institute.
Remaining lease length can affect a property’s value, mortgageability and saleability. Under the current system, allowing a lease to fall below 80 years can also increase the cost of extending it.
Leaseholders approaching that point may therefore need to consider their options before attempting to sell or remortgage.
REFORMS NOT FULLY IMPLEMENTED
The Government has proposed measures intended to make lease extensions and freehold purchases easier and less expensive, including provisions within the Leasehold and Freehold Reform Act 2024.
However, parts of the legislation are not yet in force and are expected to be introduced in stages. Leaseholders must currently make decisions under the rules applicable at the time.
Kion Ahadi (main picture inset), CEO of the Leasehold Advisory Service, said: “Our new tool gives leaseholders a simple way to understand where they stand.
“By bringing together lease-length information, estimated extension costs and practical guidance in one place, we’re making it easier for people to make informed decisions about their home.”
He added: “Many leaseholders are unaware of the importance of their lease length until they come to sell, remortgage or consider extending their lease.
“Checking your lease early can help you understand your options and avoid making decisions under unnecessary time pressure.”
