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Property lawyers have warned that measures in the Tenancy Reform Act may not come into force until 2028.
The legislation will abolish leasehold rights on new homes and extend the standard lease term from 90 years to 990 years.
The bill was rushed through Parliament before it is dissolved ahead of next month’s general election.
Amber Krishnan Bird, a property lawyer at Osbornes Law, said: “Many homeowners have enquired about extending their leases after hearing about the new law, only to be disappointed as they will be extending them under the old rules as the law has not yet come into force.”
“Clearly the new law seems more favourable to leaseholders so if there is no immediate need for an extension it may be worth waiting.”
The Act abolishes the marital value, which is the value of real property after the lease is extended, which determines the cost of extending the lease of real property when the lease term falls below 80 years.
Ground rent increases were capped and it was no longer necessary to own a property for two years before being allowed to extend a lease.
Krishnan Bird added: “If you need to sell or mortgage your property, you may have no choice but to renew your lease before the new measures came into effect. There is also the issue that it is not clear exactly how much it will cost to renew your lease under the new regime, which could mean it will cost more as a way of compensating for the loss of marital value.”
“Finally, we don’t know who will be in power and whether they will ask for new legislation. As a result, for some it may be better to know the devil, but unless there is a need for an extension, we recommend waiting.”