Flat lease extensions and what you need to know

There are around 4.83 million leasehold properties in England — nearly one in five homes. The vast majority are flats, and all share a common issue: the lease gets shorter every year.

As that number falls, so can the property's value. When a lease drops below 80 years, it becomes harder to sell, harder to remortgage, and significantly more expensive to extend.

Whether you're planning ahead or already facing a short lease, here's what you need to know.

Why lease length matters

A lease is a diminishing asset. The fewer years left, the less your flat is worth — and the more difficult it can be to refinance or sell.

The 80-year mark is especially important. Once a lease dips below this point, a legal mechanism called 'marriage value' kicks in. It means you'll need to pay the freeholder half of the expected increase in your property's value resulting from the extension — often adding thousands to the cost.

Many mortgage lenders also set minimum lease terms. Flats with less than 85–90 years left may already raise red flags.

How to check your lease term

If you're not sure how long is left on your lease, check your copy of the title register. You can also download one from HM Land Registry's online service for a small fee. This will display the length of the original lease and the number of years remaining.

Find out who owns the freehold

To start the process, you'll need to know who the freeholder is (also referred to as the landlord). Their details should appear on your most recent ground rent or service charge demand.

If they're not listed, a solicitor can help you identify the freeholder and confirm the appropriate contact details.

Get an early estimate of the cost

Lease extension costs vary depending on:

• How many years are left on the lease
• The value of the flat
• The current ground rent
• Whether marriage value applies

For a rough estimate, try the Leasehold Advisory Service's calculator.

To get a more accurate figure, especially if you're ready to proceed, you'll need a specialist lease extension valuation.

Do you qualify for a statutory lease extension?

Most flat owners qualify to extend under the Leasehold Reform, Housing and Urban Development Act 1993 — the formal or “statutory” route.

As of 31 January 2025, you no longer need to have owned the flat for two years. You can now begin the lease extension process as soon as you're the registered owner.

If you qualify, the freeholder is legally required to grant:

• An additional 90 years added to your lease
• A reduction of ground rent to a nominal ‘peppercorn’ amount

The formal route comes with a strict legal process and timetable, which protects you if the freeholder delays or disputes the terms.

Formal vs informal lease extensions

There are two main ways to extend a lease:

1. Formal (statutory) route

• Requires at least two years of ownership
• Involves serving a Section 42 notice
• Freeholder must respond within set deadlines
• Tribunal available if terms aren't agreed
• Often used when the lease is already short

2. Informal (voluntary) route

• Can be quicker and more flexible
• No minimum ownership requirement
• Terms are negotiated directly with the freeholder
• No statutory safeguards
• Ground rent may not be reduced

Informal extensions can sometimes lead to better outcomes — but they can also expose leaseholders to poor terms, rising ground rents, or hidden costs. Always get legal advice before agreeing.

What the lease extension process involves

Every case is different, but the typical steps are:

• Valuation: Appoint a surveyor experienced in lease extensions.
• Legal advice: Your solicitor will serve notice (for formal cases) or start negotiations (for informal).
• Negotiation: Premium and terms are discussed with the freeholder or their surveyor.
• Agreement: Once settled, the new lease is granted and registered with HM Land Registry.

If no agreement is reached in a formal lease extension, you may apply to the First-tier Tribunal to decide the terms.

When should you extend your lease?

Ideally, well before it hits 80 years. Acting early can save thousands, avoid marriage value, and preserve your ability to sell or remortgage smoothly.

Even if you're not considering a move, extending now can be a wise long-term decision.

Need help with a lease extension?

We advise leaseholders nationwide on both formal and informal lease extensions.

Download our lease extension guide or contact our team today. We'll help you understand your position, negotiate fair terms, and ensure everything is done correctly — with no hidden surprises.