Introduction: The Impact of Housing Downturn on Lease Extensions

As housing prices fall, leaseholders can benefit from reduced costs when extending their lease. The value of your property plays a key role in the valuation process for lease extensions, making this an ideal time to act.

How the Market Downturn Affects Lease Extension Costs

With the market experiencing a 10% decline, the cost of lease extensions has dropped. For example, the cost for extending a lease on a £198,000 flat with 60 years remaining is now around £24,600 instead of £26,900.

An Investment Opportunity for Leaseholders

Extending your lease is not just about cost savings; it's also a chance to increase your property's market potential and add value, especially in a falling market.

Statutory Rights and Affordability in the Current Market

Under UK law, leaseholders have the right to extend their lease by 90 years and reduce ground rent to a peppercorn. This statutory right has become more accessible due to the current market conditions.

The Risks of Waiting: Why Now is a Good Time to Extend

For leaseholders with shorter leases, the market downturn presents a window of opportunity. Extending your lease now can help preserve your property’s value and make it easier to sell in the future.

The Importance of Acting Before the 80-Year Mark

As Mary-Anne Bowring from The Ringley Group warns, waiting until your lease drops below 80 years can increase the cost of extension. The premium may rise by 5% if you miss the critical 80-year threshold, particularly for properties built in the late 80s or early 90s.