Most leaseholders of flats (and some houses) qualify for a statutory lease extension under the Leasehold Reform, Housing and Urban Development Act 1993. As of 2025, thanks to the Leasehold and Freehold Reform Act 2024, you no longer need to have owned your property for two years before starting the process — making it easier than ever to protect the value of your home.
🔑 Who is eligible for a statutory lease extension?
To qualify, you must usually meet the following conditions:
- Type of lease
- You must hold a long lease, originally granted for more than 21 years.
- Most residential leases (99 or 125 years, for example) fall into this category.
- Type of property
- Flats: Almost all flat leaseholders with a long lease qualify.
- Houses: Some leasehold house owners also qualify under the 1967 Act, but the rules differ.
- Ownership period
- Previously: Leaseholders had to wait two years after purchase before they could extend.
- Now (from 2024 Act): This two-year rule has been removed, so you can apply immediately after buying a leasehold property.
- Exclusions
- Certain landlords (e.g. the Crown, National Trust, or charitable housing trusts) may have exemptions.
- Business leases and very short tenancies do not qualify.
📋 Statutory vs Informal lease extensions
Statutory Lease Extension
- Adds 90 years to your existing lease (currently; the proposed 990-year term has not yet come into effect).
- Reduces ground rent to a peppercorn (nil).
- Freeholder is legally obliged to comply once you qualify.
- If you cannot agree the premium, you can apply to the First-tier Tribunal to determine it.
Informal (Voluntary) Lease Extension
- Open to all leaseholders, regardless of eligibility.
- Negotiated directly with your freeholder.
- Freeholder can set any terms — including higher ground rent or shorter extension periods.
- No statutory protection or Tribunal fallback if negotiations break down.
⚠️ Why eligibility matters
- If you qualify for the statutory route, you benefit from legal safeguards, fixed rights, and a Tribunal safety net.
- Informal extensions can sometimes look attractive but may leave you worse off in the long run — for example, by agreeing to ongoing ground rent obligations.
That’s why it’s vital to get professional advice before agreeing to any informal deal.
✅ Summary
As of 2025, most leaseholders with a long lease qualify for a statutory lease extension, and the removal of the two-year ownership rule means you can act immediately after purchase. Statutory extensions are far safer than informal arrangements, offering guaranteed rights and protections.
At extension.lease, we assess your eligibility, calculate the likely premium, and guide you through the extension process to ensure you achieve the best possible outcome.
Not sure if you qualify? Our team can quickly confirm your eligibility and advise on the best route to secure your lease extension.
