Starting out
Lease extensions: the essentials for flat owners
A plain-English introduction to lease length, the statutory route, the informal route and the people who may need to advise you.
Why lease length matters
A lease is a right to occupy a property for a fixed period. As the unexpired term reduces, the lease becomes a diminishing asset. Extending it adds years and, under the statutory route for qualifying flats, normally reduces the ground rent to a peppercorn.
The price paid to the landlord is usually called the premium. It is separate from professional fees, the landlord’s recoverable statutory costs, Land Registry charges and any tax that may apply.
Statutory and informal routes
The statutory route follows legislation and starts with a tenant’s notice. It gives qualifying leaseholders defined rights and a process for resolving terms that cannot be agreed.
An informal extension is negotiated directly with the landlord. It can be quicker, but the proposed term, ground rent and other clauses need careful review. Compare the whole package rather than the premium alone.
Who can help
A solicitor can check eligibility, prepare and serve notices and protect procedural deadlines. A suitably experienced valuer can inspect the property, advise on valuation assumptions and recommend a negotiating position.
An automated report can help organise information and explain a calculation, but it does not replace either professional role.