Lease Extension FAQs
Why does the 80-year mark matter so much?
Once a lease drops below 80 years, marriage value applies: the landlord is entitled to half the uplift in value created by the extension. That typically adds thousands · often tens of thousands · to the premium overnight. If your lease is at 82-83 years, starting before it crosses 80 is one of the highest-value deadlines in UK property.
How much does an extension cost?
It scales with property value, years left and ground rent. Roughly: a £300,000 flat with 85 years and £250 ground rent might cost £5,000-£8,000 plus fees, while the same flat at 70 years could be £15,000-£25,000 because of marriage value. Budget £3,000-£5,000 of professional fees on top. This page's model is an estimate · a RICS valuer gives the negotiable figure.
What did the Leasehold and Freehold Reform Act change?
The 2024 Act provides for 990-year extensions, abolition of marriage value, capped ground rent in valuations and no two-year ownership wait. But most valuation provisions await secondary legislation and prescribed rates, so today's premiums are still set under the old law. If marriage value abolition is enacted, sub-80 leaseholders gain most by waiting · this is a genuine timing decision worth professional advice.
Can I sell a flat with a short lease?
Below ~80 years buyers and lenders get nervous; below 70 many lenders decline, leaving cash buyers at heavy discounts. A common fix: the seller serves the Section 42 notice and assigns the claim to the buyer, who completes the extension after purchase · preserving the price without waiting for the process.
What is the process?
Informal: negotiate with the freeholder directly · quick but no protections, and terms can be worse (rising ground rent). Statutory: serve a Section 42 notice with a valuation-backed offer; the landlord counters; the First-tier Tribunal resolves deadlock. Statutory deals add 90 years at zero (peppercorn) ground rent under current law.
For informational purposes only · Not a formal valuation · Simplified model: 5% deferment, 6% capitalisation, graph-based relativity, marriage value below 80 years · Actual premiums are negotiated with RICS valuations and vary with local relativity evidence · Leasehold reform may change valuations · England & Wales