Frequently Asked Questions
Your key questions, answered
Your Lease Extension Questions Answered
At extension.lease, we bring together the expertise of Blakes Chartered Surveyors and Arcadia Law, specialists in lease extensions and freehold enfranchisement.
Our experienced chartered surveyors and specialist solicitors have put together this collection of resources to guide you through every stage of the lease extension and enfranchisement process. From understanding how premiums are calculated to navigating recent leasehold reforms, these FAQs are designed to give you clear, practical answers to the most common questions we’re asked.
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Eligibility & Process
Most flat owners with a long lease that had a minimum lease term of 21 years at commencement qualify for a statutory lease extension under the Leasehold Reform Act. You will still qualify even if the flat is vacant or rented out to tenants.
Recent legislative changes have removed the 2 year ownership requirement so there is now no minimum period of ownership.
The statutory process takes around 6–12 months and involves:
- Surveyor’s valuation of the premium
- Serving a Section 42 Notice
- Freeholder’s Counter-Notice
- Negotiation between surveyors
- Completion and registration of the new lease
We take care of the whole process on your behalf for ease and simplicity.
Yes—directly with the freeholder. This can be quicker but the freeholder sets the terms, which may be less favourable (retention of ground rent or altering terms of the lease). Always get advice first.
You can still extend. Your solicitor can apply to the court for a “vesting order” to complete the process without the freeholder. We can assist you with this if applicable, please enquire.
Costs & Valuation
The total cost includes the premium paid to the freeholder, your surveyor’s and solicitor’s fees, and the freeholder’s reasonable professional fees. Our lease extension consultants can guide you on these costs and provide a realistic total estimated cost before you start the process.
The premium is based on the market value of the flat, the current and future ground rents payable and the number of years left on the lease. The shorter the lease, the more expensive it becomes and if its under 80 years, “marriage value” applies which substantially increases the cost.
Marriage value: The increase in property value created by the lease extension, which is split 50/50 with the freeholder once the lease drops below 80 years.
Relativity: The value of your flat with its current lease length compared to a long lease.
Your own professional fees and the freeholder’s reasonable surveyor and solicitor costs.
You will normally be expected to cover around 20% of the overall lease extension cost within the first month of the process with the remaining 80% at the end of the process on completion. Given the process typically takes around 6-12 months to complete, this allows considerable time in which to arrange the necessary funds. Our lease extension consultants can prepare an estimated total cost of the process for you so you can plan and budget accordingly.
Timing & Urgency
We would recommend extending your lease to keep it above 100 years but critically, before your lease drops below 80 years—this avoids marriage value and keeps the premium lower. If you are planning to sell or remortgage, the earlier you extend the better to avoid complication. Many mortgage lenders now insist on a minimum term of 85 years at application stage. A lease of 125 years + will ensure it is not a concern to prospective purchasers.
Usually 6–12 months for the statutory process, but delays can happen if negotiations take longer or if the matter must be referred to Tribunal (which is very rare).
Yes—you can start the process and transfer the benefit to the buyer so they can complete it after purchase.
Terms of the New Lease
You get an extra 90 years added to your lease, ground rent reduced to zero, and all other terms remain the same unless agreed otherwise. If your lease has 90 years currently, then it will be extended to 180 years on completion.
Disputes & Negotiations
Our surveyors will negotiate with the freeholder’s surveyor. If we can’t agree, the matter can be taken to the First-tier Tribunal but this is rare (less than 1% of our cases) and only recommended where commercially justifiable.
The Tribunal acts as an independent body to set the premium and settle disputed terms. Its decision is binding unless appealed.
Yes, but you’ll still be liable for both your own and the freeholder’s costs incurred up to that point.
Practical Considerations
Yes. It also makes the property more attractive to buyers and lenders.
Many lenders require 85+ years remaining at application stage, so a short lease can affect your ability to mortgage or remortgage. A statutory lease extension does not require your lenders consent whereas an informal lease extension will require it. The vast majority of our clients extend their leases under the statutory process.
Your lease will keep getting shorter, costs will rise, and the flat may become harder to sell or mortgage.
