Is now the time to extend the lease on your home?

Extending a lease can add thousands to a property’s value — but make sure to do your homework

- Cat Olley

Leasehold properties — usually flats — make up 20 per cent of the UK’s housing stock, an estimated 4.86 million homes. The term refers to a temporary right to lease land or property from a freeholder, which usually involves paying ground rent — this charge was effectively abolished for new leases last June under the Leasehold Reform (Ground Rent) Act 2022.

Leaseholders who have owned their property for at least two years have a statutory right to extend their lease by 90 years for a flat or 50 years for a house, though this excludes those on shared-ownership schemes who do not yet own 100 per cent.