Lease Extension

Lease extension 

Protect the value of your property before it costs you 

Is your lease approaching 80 years? Unsure whether to extend now or wait? Concerned about changes to leasehold law? 

The timing of a lease extension can significantly affect the cost, and the value, of your property. Once a lease drops below 80 years, extending becomes more expensive and can impact mortgageability and resale value. With leasehold reforms evolving, many leaseholders are unsure whether to act now or delay. 

Our specialist leasehold solicitors advise homeowners across Hertfordshire, Essex, and London on the right course of action – before costs escalate. 

Get clear, practical advice tailored to your situation – call 0203 871 0039 or email leasehold@attwaters.co.uk. 

Understanding leasehold properties 

If you purchase a flat in the UK, it will likely be a leasehold property. Most flats are leasehold, while the majority of houses are freehold (though there are exceptions). 

Under UK law, buying a leasehold property means you’re purchasing the right to live there for a set period (the lease term). The freeholder still owns the building and land, meaning you’ll pay ground rent. When the lease ends, ownership returns to the freeholder.

Lease extension: your rights 

Leaseholders now have the legal right to extend their lease regardless of how long they have owned the property. There are two routes: 

• Informal route – direct negotiation with your freeholder 
• Formal (Statutory) route – leaseholders can extend their lease term by 90 years and reduce their ground rent to a ‘peppercorn’ – i.e. nothing. 

Unfortunately, there is a cost to extending your lease. You will have to pay your landlord a ‘premium’ (based on remaining lease term, property value, and freeholder negotiation). Under current legislation, you will also have to pay your landlord’s ‘reasonable’ legal costs. 

Should you extend now or wait? 

This is one of the most common questions we’re asked. 

Extending too late – particularly once your lease drops below 80 years – can result in significantly higher costs due to marriage value and reduced property value. Waiting for legislative reform may seem sensible, but the timing and detail of future changes remain uncertain. 

Every leaseholder’s situation is different. The right decision depends on: 

• Remaining lease term 

• Property value 

• Long-term plans (selling, remortgaging, or staying put) 

• Your freeholder 

Early advice allows you to make an informed decision rather than reacting when costs increase.

The 80-year rule 

It is unwise to let your remaining lease term drop below 80 years. Doing so can: 

• Significantly increase the cost of extending 

• Reduce the value of your property 

• Make your property less attractive to mortgage lenders. 

If your lease falls below 80 years, marriage value applies: 50% of the increase in your property’s value after extension is payable to the freeholder – on top of premiums and legal costs.

Leasehold reforms 

Campaigners have long argued that the leasehold system is archaic and favours freeholders. 

The Leasehold Reform (Ground Rent) Act 2022 took effect in July 2022 and had the effect of reducing ground rents to zero on all new leases. Unfortunately, leases that were already in existence when the Act came into force remain unaffected. 

The second piece of legislation will address other problematic areas of the leasehold system, including (but not limited to): 

• Introducing a statutory process to calculate the cost of extending a lease or buying the freehold 

• Abolishing the ‘marriage value’ 

• Introducing the right to extend a lease by 990 years 

• Enabling leaseholders to buy out the ground rent on their property without having to extend their lease. 

Timing of new legislation is uncertain. Waiting for changes can be risky if your lease drops below 80 years. 

Acting for you in lease extensions with local councils 

We have extensive experience acting for clients where the freeholder is a local authority. 

Please click below to find out more about our experience in working with the following councils: 

• Epping Forest District Council 

• Harlow Council 

• Welwyn Hatfield Borough Council 

How our leasehold enfranchisement specialists can help 

At Attwaters, we have been helping leaseholders across Hertfordshire and Essex with lease matters for many years. We understand that the complicated process of lease extension can feel very daunting, so we’re on hand with the expert advice and specialist local knowledge you need to complete the process successfully. 

We’re also aware that the lease extension process is very expensive for leaseholders, so we’re completely transparent with our fees and work to keep costs down at all times. You’ll know what you’re paying for the outset, with no nasty surprises or hidden costs down the line. 

We can help with: 

• Advice on how to proceed with a lease extension 

• Negotiation with your freeholder 

• Getting your lease valued by a professional surveyor 

• Completing and registering the new lease. 

We also advise on collective enfranchisement, allowing you and fellow tenants to purchase the freehold and gain full ownership, eliminating ground rent and service charges. 

Worried about your lease? Get in touch 

If your lease is approaching 80 years, or you’re unsure whether to extend now or wait, early advice can protect your property value and prevent unnecessary expense. To talk to a specialist solicitor about extending your lease or purchasing the freehold of your block, please call us on 0203 871 0039 or email leasehold@attwaters.co.uk.