This article is the opinion of the author and does not constitute financial or legal advice.
If you own a leasehold property, you might be wondering whether to extend your lease now or wait for possible changes to the leasehold system. While commonhold is being discussed as an alternative, no one knows when, or if, these changes will happen. So, extending your lease now could be the safest and smartest option. Here’s why:
Political Uncertainty
The leasehold system has been under review for years, with some changes already made to make lease extensions easier. But the move to commonhold is still uncertain. The speed of these changes depends on which government is in power, and it could take years—or never happen at all. Waiting for something that may not come is risky.
Rising Costs
Lease extensions become more expensive over time, especially when your lease drops below 80 years. If you wait for commonhold, you might face higher costs if property values rise or if changes take longer than expected. Extending your lease now locks in today’s rates and saves you money in the future.
Better Negotiation Opportunities
Because of the uncertainty about future reforms, some freeholders may be more willing to negotiate better terms today. They may prefer to settle now rather than risk losing out if changes come. This gives you a chance to secure a good deal while you can.
No Guarantees with Commonhold
Even if commonhold does happen, it might not apply to existing properties. Converting from leasehold to commonhold could be complicated and require negotiations. By extending your lease now, you ensure your property’s security without relying on future changes that might not happen.
Conclusion: Act Now
While commonhold may sound appealing, waiting for changes could be costly. The uncertainty around when and how these changes will happen makes extending your lease now the safer choice. By acting now, you protect your property, avoid rising costs, and get the best possible deal.
If you’re thinking of extending your lease, it’s a good idea to seek advice from a solicitor or leasehold expert. Don’t wait for unpredictable changes—take control now and protect your investment.
Contact Us
If you have any questions or need assistance with your lease extension, don’t hesitate to get in touch. We’re here to help guide you through the process and ensure you make the best decision for your property.