Extending your lease is one of the most important financial decisions you’ll make as a leaseholder. Done correctly, it protects the value of your property and makes it easier to sell or remortgage. Done badly — or left too late — it can cost you thousands.
At extension.lease, we’ve guided countless clients through this process. Here are the most common mistakes we see — and how you can avoid them.
1. Waiting Until the Lease Drops Below 80 Years
- The mistake: Delaying too long means marriage value kicks in, making the premium much higher.
- How to avoid it: Act before 80 years — ideally at 90-100 years — to secure the lower costs.
2. Not Getting Professional Valuation Advice
- The mistake: Relying on online calculators or rough estimates can lead to overpaying or under-offering.
- How to avoid it: Instruct a qualified surveyor to prepare a valuation report tailored to your lease and freeholder.
3. Approaching the Freeholder Informally Without Advice
- The mistake: Some leaseholders try to “save costs” by going directly to the freeholder. This often results in unfavourable terms (shorter extensions, higher ground rents, restrictive clauses).
- How to avoid it: Get advice first. A statutory lease extension gives you clear legal rights: 90 years added to your lease and ground rent reduced to a peppercorn.
4. Underestimating the Timeframe
- The mistake: Thinking it will take weeks, when in reality it can take months (6–12 is common).
- How to avoid it: Start early, especially if you plan to sell or remortgage. Build in enough time for valuation, notice serving, negotiations, and potential tribunal.
5. Failing to Budget for All Costs
- The mistake: Only considering the premium and forgetting the professional fees and the freeholder’s legal/valuation costs (which you must also pay).
- How to avoid it: Budget realistically. We provide transparent estimates of all likely costs at the outset.
6. Not Using a Specialist Solicitor
- The mistake: General conveyancers may not understand the Leasehold Reform legislation, leading to delays or errors.
- How to avoid it: Use a solicitor who specialises in lease extensions and enfranchisement — they’ll keep the process moving and protect your interests.
7. Assuming the Freeholder Will Play Fair
- The mistake: Expecting a freeholder to accept your first offer or make things easy. Some are cooperative, others are highly commercial.
- How to avoid it: Go in prepared. Knowing the freeholder’s typical approach (and who their solicitors/surveyors are) gives you an edge — something our experience provides.
8. Not Protecting Your Position with a Section 42 Notice
- The mistake: Negotiating informally without serving the statutory notice — leaving you with no legal protection if talks break down.
- How to avoid it: Always serve a Section 42 notice to secure your statutory rights. Even if you settle informally later, you have legal protection.
9. Overlooking Tribunal as a Safety Net
- The mistake: Thinking you’re stuck if the freeholder demands too much.
- How to avoid it: Remember, if negotiations fail, the First-tier Tribunal can decide a fair premium. Freeholders know this — it’s a powerful bargaining tool.
10. Trying to DIY the Process
- The mistake: Some leaseholders attempt to handle the process themselves to save costs. This often results in errors, missed deadlines, or poor outcomes.
- How to avoid it: Treat this as an investment. A specialist surveyor and solicitor will almost always save you more money than their fees cost.
Conclusion
Avoiding these mistakes can save you time, stress, and thousands of pounds. With the right advice and representation, extending your lease becomes a smooth, structured process rather than a minefield.
At extension.lease, we combine valuation expertise with specialist legal support to deliver the best possible outcomes for leaseholders.
Thinking about extending your lease? Contact us today for clear, expert guidance.
