To extend your property lease or not extend?

Rebecca Edwards, a Partner in our Residential Property, ponders the question of whether you should extend your property lease or not?

Many leases granted in the 1980s (or before) for 99 or 125 years are coming to a point where the unexpired term is close to 80 years. 

This number is important as the cost of extending a lease when there are less than 80 years remaining can be considerably higher than having over 80 years remaining.

After many years there are reforms in the pipeline to benefit leaseholders, especially when it comes to extending a lease. The Leasehold and Freehold Reform Act 2024 is now law – but far from being implemented.

Whilst some changes have been made (including removing the criteria you have to have owned your property for at least two years to be able to extend), further changes, including capping ground rent and making the new term longer, are still not yet in force.  

There are also proposals that could make the process cheaper; the Act aims to make it easier and cheaper (for some) to extend a lease and buy their freehold. It also aims to increase the standard lease extension term to 990 years.

Meanwhile, the draft Leasehold and Commonhold Reform Bill was published on January 27th, 2026 - however the timeline of if and when that will become law is not clear.

So, the question on whether to extend your lease now very much depends on individual circumstances, ie: if the term is close to 80 years or less then you may find it difficult selling or mortgaging your flat.

The criteria and process for extending your lease is complex and you should therefore seek specialist advice.

If you need legal clarification on this issue or similar, please contact Rebecca Edwards by emailing raedwards@cozens-hardy.com or calling the team on 01603 625231.