The Statutory Lease Extension Process
A Step-by-Step Guide to Extend Your Lease
How the Statutory Lease Extension Process Works
Thinking about extending your lease?
Our lease extension explainer video is designed to walk you through the process step by step.
Presented by experienced lease extension surveyors and specialist solicitors, it clearly sets out the typical stages a leaseholder in Greater London or across England will face when pursuing a statutory lease extension under the Leasehold Reform, Housing and Urban Development Act 1993.
Whether you’re looking for a lease extension valuation surveyor, need guidance from a specialist in lease extension valuation, or simply want to understand how the legal notice and negotiation process works, this video provides a clear, accessible overview.
It’s the ideal starting point for anyone searching for a lease extensions specialist in Greater London or reliable lease extension valuation services across England.
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Step 2: Instruct Blakes (Chartered Surveyors)
You will need a formal valuation report to:
- Estimate the likely premium payable to the freeholder
- Provide a recommended offer figure (to be included in the notice)
Assist in negotiations and, if necessary, support you at Tribunal
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Step 3: Instruct Arcadia Law (Solicitors)
A solicitor experienced in leasehold enfranchisement will:
- Review your lease and title documents
- Serve the Section 42 Notice (the formal statutory notice to the freeholder)
- Manage compliance with legal timeframes and processes
- Deal with the legal conveyancing and lease registration
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Step 4: Serve the Section 42 Notice (Handled by Arcadia Law)
Your solicitor will serve a Section 42 Notice on the freeholder. This:
- Formally starts the statutory lease extension process
- Sets out your proposed premium (based on the surveyor’s advice)
- Requires the freeholder to respond within at least 2 months (but not later than 6 months)
A deposit of 10% of the premium proposed (or £250, whichever is greater) is payable to the freeholder upon service of the notice.
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Step 5: Receive the Section 45 Counter-Notice (Handled by Arcadia Law)
The freeholder must respond with a Section 45 Counter-Notice within the statutory deadline (usually 2 months). This confirms:
- Whether your claim is admitted
- The freeholder’s counter-offer premium and proposed terms.
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Step 6: Negotiation Period (Up to 6 Months)
Once the Counter-Notice is received, both parties have 6 months to:
- Negotiate the premium and any lease terms not agreed
- Exchange valuation evidence (between surveyors)
- Aim to reach an amicable settlement
Most matters are settled within this period without recourse to a Tribunal.
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Step 7: Apply to Tribunal (If Needed)
It's rare but if terms are not agreed within the 6-month window:
- Either party can apply to the First-tier Tribunal (Property Chamber) to determine the premium and lease terms
- Applications must be submitted before the end of the 6-month period
- Tribunal proceedings may take several months and incur further costs
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Step 8: Agree and Complete the Lease Extension
Once terms are agreed (either through negotiation or Tribunal decision), solicitors will:
- Finalise the new lease document (typically adding 90 years and reducing ground rent to a peppercorn)
- Execute the lease on behalf of both parties
- Register the new lease at the Land Registry
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Step 9: Settle All Costs
At completion, the leaseholder is responsible for:
- Paying the agreed premium
- Paying the freeholder’s reasonable legal and valuation fees (as permitted under the 1993 Act)
- Paying the leaseholder’s own legal and valuation costs
Expected Timeline
- Overall process: Typically takes 6–12 months
- Notice to agreement: Usually 3–6 months
- Registration with Land Registry: Circa 12 Months currently but we can expedite this process with HM Land Registry on your behalf if necessary. Please enquire.
