One of the first items in the Government’s long awaited reform has landed! It’s a very minor change and doesn’t address the major issues that currently blight leaseholders’ lives. But it’s a start!
A new buyer of a leasehold property no longer needs to wait 2 years before being starting a lease extension. This will simplify purchases on low leases. Currently the buyer usually asks the seller to begin the extension process to avoid this 2 year wait, and the estimated costs are then factored into the sale price. But now the buyer can begin the process on day 1 if needed. This comes into force on the 31st Jan. Details here https://www.legislation.gov.uk/uksi/2025/57/contents/made
On the other hand, the Leasehold & Reform Act contains proposals to make extensions cheaper by scrapping marriage value (the premium payable on leases below 80 years), requiring freeholders to pay their own legal costs (currently the leaseholder is expected to cover them) and reviewing the calculations currently used to set premiums payable. So if your lease is longer than 80-82 years, you may still be wise to wait.
However the wait may be the best part of a year because in January the Royal Courts of Justice granted 7 freeholder groups the right to a judicial review of the proposed reforms because they would affect their revenue and “breach their rights under the Human Rights Act”. I’m not a lawyer but they seem to have confused the right to the peaceful enjoyment of one’s property with the peaceful enjoyment of one’s property *revenue*! This is set for July, as is the Government’s consultation on this.