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Make lease extensions easier, say experts

Written by: Mary-Anne Bowring 02/09/2020
  1338       0
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A Call for Leasehold Reform

A group of leasehold experts is calling on the government to make it easier for flat owners to extend their leases. The Association of Leasehold Enfranchisement Practitioners (ALEP) has written to Housing Minister Esther McVey, urging her to review and improve flat owners' rights.

The Problem with the Two-Year Rule

As the law currently stands, leaseholders must own their property for at least two years before they can extend their lease. ALEP argues this rule is inconsistent, as flat owners immediately have the right to acquire the freehold of their building. While some buyers avoid the two-year rule if the seller has already qualified for an extension and initiated the claim, this is not common.

Why This Rule Is Costing Flat Owners Money

Under current leasehold law, eligible flat owners can extend their lease by 90 years, with ground rent reduced to zero. However, since a lease is a depreciating asset, waiting two years could significantly increase the cost of an extension. ALEP director John Midgley emphasizes that removing this rule could help leaseholders protect the value of their homes.

The Government's Leasehold Reform Pledge

Leasehold legislation is under review as part of the government's commitment to reform the sector. However, ALEP believes that modifying the two-year rule would be a small but impactful change that could be implemented quickly as part of a future Housing Bill.

Ringley's Support for Leasehold Reform

At Ringley, we support any rule change that simplifies the lease extension process for leaseholders. We understand that navigating lease extensions can be complex, so we offer specialist advice through Ringley Law to ensure leaseholders get the best value from their property.

Help and Resources for Leaseholders

If your lease is approaching the crucial 80-year mark, now is the time to act. Ringley provides lease extension information on our website, including a downloadable guide explaining the process. If you need further advice, give us a call—we're here to help.



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