Measures in the Leasehold Reform Act may not be operational until 2028, a property lawyer has warned.
The law scraps leaseholds on new houses and extends the standard lease term to 990 years, up from 90.
It was rushed through parliament before it was dissolved ahead of the General Election next month.
Amber Krishnan-Bird, a specialist property solicitor from Osbornes Law, said: “A lot of homeowners who have heard the news about the new law have enquired about extending their lease, only to be disappointed that the law isn’t operational yet, meaning they would be extending under the old rules.
“Clearly the new law appears to be more beneficial to the leaseholder, so if there is no pressing need to extend then it could be worth waiting.”
The law abolishes marriage value – the value of a property once a lease has been extended – which governs the cost of a lease extension for properties where leases have fallen below 80 years.
There is a cap on ground rent increases, while people no longer need to own the property for two years before they are allowed to extend the lease.
Krishnan-Bird added: “If you need to sell your property or get a mortgage then you may be left with no choice but to renew your lease before the new measures come in. There is also the issue that it isn’t clear exactly how much it will cost to renew a lease under the new regime and it could cost more as a way of compensating freeholders for the loss of married vale.
“Finally, we don’t know who will be in government and if they would seek to make changes to the new law. As a result, it may be better the devil you know for some people, but we suggest that unless you need to extend then perhaps wait.”
