I have to extend the lease on the one bedroom London flat I own/live in. It was at 90 years as of July this year. I don’t know whether to do it now, or wait for the now passed leasehold reform bill to come into full effect sometime in 2025 or 2026. Anyone know anything about this or in a similar position and have opinions on what’s best to do?
No one seems to know if it will be cheaper or more expensive if I wait. The internet tells me “This is because the Act doesn’t specify the rates that will be used to determine lease extension and freehold purchase prices. These “deferment and capitalisation rates” will be set at a later date and if they’re set at a lower rate than what is currently agreed between valuers, the cost of lease extensions could go up. “ That said, the act when in full effect means the leaseholder will no longer need to pay the freeholders legal fees, so that will take part of the cost down. Also I will get a 90 year extension now but 999 years if I wait, which presumably will impact how desirable my property is should I move/sell in the future.
Money is tight and although I have money put aside for this, if I end up spending 2 or 3 thousands that I didn’t need to if I do it now, it will be a bitter pill to swallow. Any thoughts?