Free lease extension calculator launched for leaseholders

A new online tool has been launched to help leaseholders check their lease length and estimate extension costs.

The Leasehold Advisory Service has launched a free lease extension calculator which provides leaseholders with personalised information about their remaining lease term.

The news comes as, under the Leasehold and Commonhold Reform Bill, leaseholders will gain stronger rights, including making lease extensions and freehold purchases cheaper and easier, as well as simplifying the process of converting leasehold flats to commonhold.

The government has also announced that the proposed cap on ground rents at £250 a year will not come into effect until 2028.

Leaseholders unaware of importance of lease length

Kion Ahadi, chief executive of the Leasehold Advisory Service, said: “Our new tool gives leaseholders a simple way to understand where they stand. By bringing together lease length information, estimated extension costs and practical guidance in one place, we’re making it easier for people to make informed decisions about their home.

“Our analysis suggests that around one in 12 residential leases have between 80 and 90 years remaining. Many leaseholders are unaware of the importance of their lease length until they come to sell, remortgage or consider extending their lease.

“Checking your lease early can help you understand your options and avoid making decisions under unnecessary time pressure.”

Analysis by the Open Data Institute (ODI) reveals significant regional differences. Of the leases identified as having between 80 and 90 years remaining, the largest proportion were found in London (41%), followed by the South East (16%) and the East of England (11%).

More information on the tool can be found by clicking here.