Extending your lease is one of the most important decisions you can make as a leaseholder. Whether you’re trying to protect your property’s value, avoid costly marriage value, or secure mortgage eligibility, knowing how to extend your lease gives you greater financial and legal control. This comprehensive guide walks you through both formal (statutory) and informal (voluntary) routes, key timelines, common mistakes, and expert tips.
Why Extend Your Lease?
Leasehold properties lose value over time as the lease shortens. A flat with a lease under 80 years is harder to sell, can attract fewer lenders, and costs significantly more to extend due to marriage value.
Benefits of extending your lease:
- Preserves or increases your property value
- Removes or reduces ground rent
- Improves mortgage options and resale opportunities
- Future-proofs your investment
Two Routes: Statutory vs Informal Lease Extensions
There are two main methods to extend your lease:
1. Statutory (Formal) Lease Extension
This route is governed by the Leasehold Reform, Housing and Urban Development Act 1993. It gives you strong legal protections and a predictable process.
Key Features:
- Adds 90 years to the current lease term
- Reduces ground rent to peppercorn (£0)
- Landlord must respond within legal timeframes
- Disputes can be resolved at Tribunal
2. Informal (Voluntary) Lease Extension
This is a private negotiation between you and the freeholder, with more flexible terms but fewer legal safeguards.
Key Features:
- Lease length and terms are negotiable
- Ground rent may continue or increase
- No obligation for freeholder to respond or agree
- No right to Tribunal if negotiations break down
Our Advice: Choose the statutory route if eligible. It’s more secure, typically more cost-effective long-term, and avoids hidden clauses.
Eligibility: Who Can Extend Their Lease?
As of January 2025, the 2-year ownership rule has been abolished. You can now start a statutory lease extension immediately after purchasing a qualifying property.
To qualify for a statutory lease extension:
- You own a residential lease originally granted for more than 21 years
- Your landlord is not a charitable housing trust who provided your flat as part of its charitable work
Step-by-Step: How to Extend Your Lease (Statutory Route)
Step 1: Instruct a Valuer
Instruct a RICS-accredited surveyor to determine a fair premium (price) for the lease extension.
Step 2: Appoint a Solicitor
Choose a solicitor with lease extension experience. They’ll guide you through legal paperwork, notices, and negotiations.
Step 3: Serve a Section 42 Notice
Your solicitor formally serves this notice to your freeholder, proposing your extension and premium.
Step 4: Landlord Responds with Section 45 Counter-Notice
The freeholder has 2 months to respond. They may accept or suggest alternative terms.
Step 5: Negotiate
Your surveyor and solicitor negotiate with the landlord’s team to agree on the premium and terms. You have 6 months to reach agreement.
Step 6: Tribunal (If Required)
If no agreement is reached, apply to the First-tier Tribunal. They’ll decide the terms.
Step 7: Complete and Register
Once terms are agreed or imposed, your solicitor completes the lease extension and registers it with the Land Registry.
Timeline Overview (Statutory Route)
| Stage | Estimated Time |
| Valuation & Solicitor Prep | 1–2 weeks |
| Serving Notice | Immediate |
| Landlord Response | 2 months |
| Negotiation Period | Up to 6 months |
| Tribunal (if needed) | Adds 3–5 months |
| Completion & Registration | 2–4 weeks |
Total time: 6–12 months depending on complexity and cooperation.
Step-by-Step: Informal Lease Extension
- Approach your freeholder with a request to extend
- Receive an informal offer, usually including premium and proposed new lease terms
- Review with your solicitor and valuer — watch out for unfair terms like escalating ground rent
- Negotiate and agree terms
- Complete and register the new lease
Timeline: Often 2–6 months, but no legal guarantees or protections.
Frequently Asked Questions
Can I extend my lease during a sale?
Yes. You can serve a Section 42 notice and assign the benefit to your buyer, allowing them to complete the extension post-sale.
Do I need lender consent?
- Statutory route: Not initially, but your lender must be informed before registration.
- Informal route: Yes, you’ll need written lender approval.
What if my freeholder doesn’t respond?
You can apply to the Tribunal or, if the freeholder is missing, apply to court for a vesting order.
Common Pitfalls to Avoid
- Delaying past the 80-year threshold — triggers marriage value, which significantly raises your premium
- Accepting an informal offer without review — clauses may lock you into escalating costs
- Choosing non-specialist professionals — lease extensions are complex; always use experienced surveyors and solicitors
Expert Tips
- Always get a professional valuation first — this prevents overpaying
- Budget for all costs — include legal, surveyor, and freeholder’s fees
- Use the statutory route where possible — it’s more secure and fair
Real-World Example: Sarah’s Extension Journey
Sarah owned a flat with 80 years left on the lease. She got a valuation showing she’d face a £12,000 premium now, or over £20,000 if she waited a year. She chose the statutory route, hired a leasehold solicitor, and served her Section 42 notice.
The process took 7 months. She extended her lease by 90 years, eliminated ground rent, and increased her flat’s value by £25,000.
Ready to Start Your Lease Extension? At Extension.Lease, we specialise in lease extensions and help you avoid common pitfalls. We offer expert valuations, guide you through notices, and negotiate on your behalf for the best outcome. Solicitors, surveyors, sorted.
