The Leasehold Advisory Service (LEASE) and the Open Data Institute have launched a new tool to assist leaseholders in England and Wales. The tool allows users to check the remaining length of their lease, estimate the current cost of an extension, and understand how planned government reforms could affect their options.
Research from LEASE and the Open Data Institute indicates that 8% of residential leases have between 80 and 90 years remaining. Extending a lease can become significantly more expensive once it falls below 80 years, potentially increasing from thousands to tens of thousands of pounds.
Government reforms, including the abolition of 'marriage value' – an additional payment for leases under 80 years – are intended to reduce the cost of lease extensions. However, the precise savings for leaseholders are yet to be determined. A consultation on other charges used in lease extension calculations is open until 23 September 2026, with further legislation required to finalise the new system.
Richard Hand, senior legal adviser at LEASE, advises that the decision to extend now or wait depends on individual circumstances. He suggests there may be a benefit in waiting for those with 80 years or less remaining due to the planned removal of marriage value. However, leaseholders just above the 80-year threshold should seek urgent specialist advice due to the risk of waiting under current law.
The Leasehold and Freehold Reform Act was passed in 2024, extending standard lease terms to 990 years and simplifying processes for challenging charges and taking over building management. Most of these measures require secondary legislation to come into force. Draft legislation published in January 2026 by the Starmer government aims to cap ground rents at £250 a year and ban leaseholds for most new flats, with the earliest implementation expected in 2027.