Thought I would phone Mobility for an update after the changes, as regards lease extension regardless of contract or mileage this has ceased, originally they would allow 3 to 6 month at the end of the lease, this has now change to 2 or 3 weeks maximum at the end of the lease. Personally I feel a little cheated we paid £6999 AP signed a lease contract with the possibly of a 24 month lease extension, personally with all the changes due next year the scheme is not longer suitable for us.
The problem is that a Motability lease contract is taken out for a period of 3 years (5 years for a WAV).
Basically, any extension of a 3 year lease (or 5 for a WAV) does not form part of the initial contract length , but is by the agreement of Motability. And Motability do have a right to not agree to extend a lease, providing that due notice of a minimum of 60 days is given (which they generally do in the letter inviting one to place a new order, 3 months in advance of original lease expiry).
Unfortunately this position has been tested by the Financial Ombudsman Service in this case:
https://www.financial-ombudsman.org.uk/decision/DRN-5711848.pdf
and other cases. Customer’s complaints about not being permitted a lease extension were not upheld by the Ombudsman, who found in favour of Motability.
Basically the twenty four months mentioned in the signed agreement is only with the permission of Motability, not a contractual right sadly.