If your lease drops below 80 years, your property value can fall sharply and extending it becomes more expensive because of marriage value (until reforms fully remove it). Homes with short leases are also harder to mortgage. If the lease expires entirely, ownership reverts to the freeholder.
This guide explains "how to extend a lease" in plain English, giving a clear "lease extension process explained step-by-step" alongside lease extension costs, eligibility, and essential lease extension advice.
Your Right to Extend a Lease - At a Glance
Your legal right to a 90-year extension at a peppercorn ground rent comes from the Leasehold Reform, Housing and Urban Development Act 1993, which sets out who qualifies and how the lease extension process should work.
Most leaseholders have the right to extend their lease by 90 years and reduce ground rent to a peppercorn (£0).
For example, 70 years remaining becomes a 160-year lease.
You pay a premium based on property value, lease length, ground rent, and market factors. You can also negotiate an informal (private) lease extension, but the terms are not protected and may include higher ground rent.
Key 2025 Updates
No 2-year rule: Since 31 Jan 2025, leaseholders can apply for a statutory extension immediately.
Reforms pending: Plans for 990-year terms and ending marriage value are in the 2024 Act but not yet active.
Ground rent: Statutory extensions reduce it to peppercorn (£0). Informal deals must set any extra term to peppercorn, but the original term can still carry rent.
Two Ways to Extend a Lease
There are two main routes:
1. Statutory Lease Extension (Formal Route)
- Adds 90 years
- Ground rent becomes £0
- You gain legal protection and access to Tribunal if needed
2. Informal or Private Lease Extension
The landlord can offer any deal they like, often shorter terms or higher ground rent. Always compare informal terms against your statutory rights before accepting.
Before You Start: Lease Extension Preparation Checklist
Before serving a Section 42 notice, ensure you have:
- Checked eligibility and identified the competent landlord
- Instructed a specialist lease extension solicitor
- Instructed a RICS valuation surveyor (lease extension surveyor)
- Assessed the likely premium
- Planned how to finance the extension, including the landlord’s reasonable fees
- Collected key documents (lease, Land Registry title, head lease details)
Serving notice too early can create avoidable delays and costs.
How to Extend a Lease: Step-by-Step Lease Extension Process
Gather Documents
- Lease copy and Land Registry title.
- Identify the competent landlord (usually the freeholder, or a head leaseholder with at least 90 years longer than your term).
Finding the competent landlord:
- Check ground rent/service charge demands
- Obtain the freehold and head lease titles from Land Registry
- Use information notices if needed
Hire Specialists
- Solicitor: Drafts and serves notices, negotiates terms, and registers the new lease.
- RICS valuation surveyor: Calculates the premium.
A good surveyor will provide a “best and worst case” premium range, valuation is not an exact science. Choose ALEP practitioners or specialists where possible.
Get Valuation and Set Offer
Your valuer prepares the Section 42 offer. Extending before 80 years usually keeps costs lower because marriage value applies below 80 years under current rules.
Serve Section 42 Notice
Solicitor serves notice on the competent landlord and registers it with HM Land Registry.
Serving notice fixes the “valuation date”, later market changes will not affect the premium calculation.
Landlord’s Section 45 Counter-Notice (within 2 months)
The landlord may accept your terms, propose alternatives, or deny your claim.
If they fail to respond, you can apply for a vesting order and continue on your proposed terms.
Negotiate or Go to Tribunal
If no agreement is reached, either party may apply to the First-tier Tribunal within 6 months of the counter-notice.
Missing the 6-month deadline means the claim lapses and you may need to wait 12 months to restart. Negotiations are typically handled by both parties’ surveyors.
Complete & Register
Once terms are agreed or decided by Tribunal:
- Pay the premium and both sides’ reasonable costs.
- Solicitor registers the new lease with HM Land Registry.
- Notify your mortgage lender if required.
HM Land Registry completes about half of applications to register a new lease in around 7 to 10 months, and almost all in around 12 to 13 months (a small number can take longer), depending on how complete the application is.
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Key Procedures & Deadlines
- Landlord may request information within 21 days
- You must reply within 21 days
- Counter-notice deadline: within 2 months after serving notice
- Apply to Tribunal: no sooner than 2 months after counter-notice, no later than 6 months
- Complete within 2 months after Tribunal decision
Missing deadlines can cause your claim to fail.
Lease Extension Costs
Below we have outlined some of the costs associated with a lease extension:
| Item | Typical Cost |
|---|---|
| Lease extension premium | £7,000 - £10,000 |
| Your surveyor’s valuation | £600 - £900 |
| Your solicitor’s fees | £600 - £1,200 |
| The freeholder’s valuation | £600 - £900 |
| The freeholder’s solicitor costs | £600 - £1,200 |
| Surveyor’s negotiation costs | £150 - £200 an hour |
| Land Registry fees | £45+ |
On top of these main items, some freeholders also charge administration fees for handling notices, dealing with your lender, or providing information packs. Your solicitor should flag any administration fee that looks unreasonable or is not clearly explained in your lease.
Remember: you usually pay both your own and the landlord’s reasonable legal and valuation fees.
Try our Lease Extension Calculator for tailored costs.
Lease Extension Land Registry Fees & Timeline
HM Land Registry fees for registering an extended lease typically start from £45 and can increase depending on the value/rent used for the fee calculation.
Why Extend Your Lease?
Some of the benefits of extending a lease early include:
- Protecting your property’s market value.
- Keeping the flat mortgageable.
- Cutting ground rent to peppercorn.
- Avoiding marriage value (until reform formally abolishes it).
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Eligibility Rules for a Lease Extension (2025)
You qualify for a statutory lease extension if:
- You hold a long lease (21+ years when granted).
- You no longer need to wait 2 years to apply
Is It Better to Extend or Buy the Freehold?
Sometimes buying the freehold, alone or with neighbours, may be better than extending. A solicitor experienced in both lease extensions and enfranchisement can help you compare the options.
Alternatives to Lease Extension
- Buying the Freehold (houses)
- Collective Enfranchisement (flats)
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Common Problems and Solutions
There are many common challenges when it comes to extending a lease. Below we discuss some of these and explain how to overcome them:
Absent landlord
If you can’t locate the freeholder, you can apply for a vesting order. The Tribunal will usually decide the premium, and the court grants the lease in the landlord’s absence.
Premium disputes
If you cannot agree, apply to the First-tier Tribunal within 6 months of the counter-notice.
Informal lease extensions
These “private lease extensions” may include higher ground rent or shorter terms, always compare with statutory rights before agreeing.
Find a Regulated Valuation Surveyor
At Compare My Move, we can match you with up to 5 registered valuers to assist with your lease extension valuation. This way you can compare valuation surveyors and save up to 70% on your lease extension costs.
For your peace of mind, all of our valuation and surveying partners are regulated by RICS and must also go through a strict verification process before joining our network.
FAQs
How do I extend the lease on my flat?
Extend your lease by following the 7-step statutory process explained above, check eligibility, hire a solicitor and surveyor, serve a Section 42 notice, negotiate, and complete. Extending your lease protects the value of your leasehold interest in the flat and can make it easier to sell or remortgage.
How much does it normally cost to extend a lease?
Costs vary, but include the premium, valuation fees, your solicitor, and the landlord’s reasonable costs.
At what point should I extend my lease?
Most leaseholders act before 80 years remaining to avoid marriage value.
What is the leasehold extension process explained simply?
Serve a Section 42 notice, receive the landlord’s counter-notice, negotiate or go to Tribunal, and complete the new lease.
What are Land Registry fees for a lease extension?
Typically £20–£40.
Where can I get lease extension advice?
Specialist lease extension solicitors, RICS valuers, and official leasehold advice services.
