If you’re in the process of buying a leasehold flat and discover the lease is short, you may be wondering whether it’s possible — or advisable — to extend the lease as part of the purchase. The good news is: yes, you can. In fact, addressing the lease extension at the point of purchase is often the smartest and most cost-effective route.
In this detailed guide, we’ll explain how lease extensions during purchase work, your options, legal steps involved, and the benefits of coordinating the process with the seller. Whether you’re a first-time buyer or experienced investor, this guide will help you avoid common pitfalls and secure your flat’s long-term value.
Can You Extend the Lease at the Same Time as Buying?
Yes — but you can’t apply for a statutory lease extension until you legally own the flat (with some exceptions). However, you can still benefit from the seller initiating the process before completion.
There are two common ways to manage lease extensions during purchase:
Option 1: Seller Serves a Section 42 Notice Before Completion
- The seller serves a statutory lease extension notice (Section 42 notice)
- You, as the buyer, take an assignment of that notice on completion
- You continue the lease extension process immediately after the purchase
This route is legally protected and gives you full statutory rights — including:
- 90 years added to the existing lease
- Ground rent reduced to zero (peppercorn)
Option 2: Negotiate an Informal Extension as Part of the Sale
- The seller and freeholder agree to extend the lease informally before or during the sale
- Completion happens once the new lease is granted
This method is less legally robust and depends on freeholder cooperation, but can work well in some scenarios (e.g., cash buyers or when time is tight).
Why Extend the Lease During Purchase?
Extending during the transaction avoids:
- Future delays or mortgage complications
- Rising lease extension costs (especially if nearing or under 80 years)
- Additional legal and valuation fees later
It also gives you:
- Immediate control over the flat’s long-term value
- Peace of mind when budgeting your investment
- Enhanced mortgage eligibility from the outset
Statutory Route: How It Works in Practice
Here’s a step-by-step breakdown:
- Buyer and Seller Agree to Extend
The buyer’s solicitor requests that the seller serves a Section 42 notice as a condition of sale. - Valuation Conducted
A RICS surveyor values the premium for lease extension. The seller uses this to propose a premium in the notice. - Seller Serves the Section 42 Notice
The notice is served on the freeholder before exchange of contracts. - Notice Is Assigned to the Buyer
At completion, the benefit of the notice is assigned to the buyer through a Deed of Assignment. - Buyer Continues the Process
You complete the lease extension on the same terms already initiated by the seller, including ongoing negotiation with the freeholder or Tribunal if required.
Legal Protections for Buyers
- The Section 42 notice remains valid after sale (provided the assignment is done properly)
- The freeholder cannot withdraw or ignore the notice
- The lease extension premium is calculated based on the original date the notice was served
This helps prevent delays, avoids price increases, and protects your right to extend.
Informal Route: Pros and Cons
Pros:
- Can be quicker (depending on freeholder)
- May be cheaper upfront (though not always in the long run)
Cons:
- No statutory protections
- Ground rent may remain
- Lender approval is required
- Terms cannot be disputed at Tribunal
Always have informal terms reviewed by a leasehold solicitor before proceeding.
What If the Seller Refuses to Extend the Lease?
If the seller is unwilling or unable to serve a notice:
- You can still proceed with the purchase
- But you’ll need to wait until you own the flat to begin the statutory lease extension (as of Jan 2025, no need to wait 2 years)
However, you’ll then:
- Pay a premium based on the date you serve notice (which may increase)
- Be responsible for all legal and valuation costs yourself
Tip: Consider negotiating a price reduction in the sale to account for this.
Common Questions Answered
Will I pay for the lease extension or will the seller?
This is negotiable. Often:
- Seller pays to serve the notice
- Buyer pays for the premium and completion
- Legal fees are split or included in the purchase price
Can I get a mortgage before the lease is extended?
Yes — provided the lease is long enough (typically 85+ years) or the extension is agreed contractually as part of the purchase.
Is an informal extension good enough?
Only if the ground rent is reduced to zero and lease terms are fair. Always consult a solicitor.
Summary: Which Route Is Best?
| Scenario | Best Option |
| Lease under 80 years | Statutory route via assignment |
| Lease 80–100 years | Statutory or informal, depending on terms |
| Seller cooperative and time available | Statutory route |
| Tight timelines or cash buyer | Informal extension may suffice |
Key Takeaways
- You can benefit from a lease extension during purchase via notice assignment
- Statutory route offers more protection and better long-term value
- Informal extensions are less secure — seek professional advice before accepting
- As of January 2025, buyers no longer need to wait 2 years to extend
Ready to Secure Your Lease During Purchase?
If you’re buying a leasehold flat and worried about the lease term, we’re here to help. At Extension.Lease, we work with buyers, sellers, and solicitors to coordinate lease extensions that maximise value and eliminate future hassle.
