Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

Short Leaseholders Weigh Whether to Extend Now or Wait for Leasehold Reform

Leaseholders with shortening leases are increasingly asking a difficult question: should they pursue a lease extension or enfranchisement now, or hold off until the government's reform agenda is fully in place? That is the dilemma explored in a recent article by Vanessa Griffiths, an ALEP member, published on Property118.

According to the article, the question arises frequently among leaseholders, who are weighing current rights against the changes promised by pending legislation.

The legislative backdrop

Two pieces of legislation sit at the heart of the debate. The first is the Leasehold and Freehold Reform Act 2024, which has already been passed. The second is the Commonhold and Leasehold Reform Bill, which the article describes as soon-to-be-published and not yet finalised.

Because the full picture of reform is not yet complete, leaseholders face uncertainty about whether acting now or waiting will serve them better on the cost and terms of extending a short lease.

What the article considers

Ms Griffiths approaches the question specifically from the point of view of a leaseholder whose lease is shortening. In that situation, timing can matter: the shorter the remaining term, the more pressing the decision to extend or enfranchise becomes, while the reform framework that might change the calculus remains in flux.

The article does not offer a definitive rule for every case. Instead, it engages with the considerations leaseholders should weigh when deciding between extending now under the current regime and waiting for the reforms promised by the 2024 Act and the forthcoming Bill.

Why it matters for agents and clerks

For UK letting agents and inventory clerks, the topic is directly relevant to day-to-day practice. Short leases affect marketability, financing and valuation, and clients and landlords may turn to agents for an understanding of where leasehold reform stands and what it might mean for properties on their books.

With the Commonhold and Leasehold Reform Bill not yet published, agents should be aware that leaseholders in their portfolios may be actively weighing the extend-now-or-wait question, and that advice in this area continues to evolve as legislation progresses.

Agents and clerks seeking the full analysis, including the specific considerations raised by Ms Griffiths, can read the original article on Property118.