Preparing Your Flat for the Next Owner: Why Extending the Lease Now Pays Later
As a chartered surveyor and RICS Registered Valuer working across the South East, I’ve seen many leaseholders whose motivation to extend their lease is strictly “we might sell soon” and that’s absolutely valid. But what I often emphasise is this: extending before you sell isn’t just about avoiding a reduction in value; it’s about making your flat ready to attract the next owner on the strongest footing.
The “next buyer” mindset
When a prospective purchaser views a flat with, say, 78 years left on the lease, they bring a number of hidden costs and uncertainties into their offer. They’ll ask themselves: “What’s the cost to extend? How long will that take? Could the freeholder push a higher premium (especially if we fall under the 80-year hurdle and marriage value applies)?” As the surveyor on the vendor’s side, I can tell you these questions tend to leave a mark on offer levels.
By contrast, if you’ve extended your lease in advance (or at least obtained a robust valuation and had discussions underway), you’re presenting a flat that is pre-packaged for sale: clean lease term, ground rent resolved, fewer unknowns for the buyer. That often equates to a stronger bid, less negotiation slack, and smoother conveyancing.
How the factor of “readiness” shows up in practice
· Buyer finance and mortgageability: Many lenders apply stricter criteria if lease term falls below a threshold (commonly 80 years). An earlier extension can remove a potential hurdle before the buyer even comes into the process.
· Reduced negotiation risk: When the buyer’s solicitor or valuer spots the lease term is short, they often raise queries or require you to hold funds in escrow until the extension completes. That means delay and potential reduction in bidding flexibility.
· Marketing appeal: From a marketing perspective (even if you’re not using an estate agent), a flat described as “long lease with no urgent extension required” goes down better. The phrase “under 80 years remaining” or “extension due to be served” can subconsciously reduce interest or speed of sale.
· Cleaner valuation evidence: As a surveyor, when I value a flat for lease extension purposes, having a clear, documented path (e.g., valuation report, freeholder correspondence, proposed premium) adds weight and reassurance. That tends to reflect in the premium required and negotiation stance.
When it doesn’t make sense, and what you must check
Of course, not every flat should rush into a lease extension. If your lease is still long (e.g., 120 years+), you might choose to wait. But if you’re under, say, 90 years — or you anticipate a sale within the next 2-3 years — then the “sell-ready” perspective becomes critical.
You’ll want to ensure:
· The flat is being marketed in a realistic timeframe (so the extension is either completed or clearly in process).
· Your service charges, building management and freeholder records are tidy — buyers will check these in addition to the lease.
· The lease extension valuation is independent and detailed (not just a freeholder quote) so you can evidence the premium and timing to any potential buyer or their surveyor.
· The extension isn’t going to run so long you remove all bargaining room with your buyer — sometimes completing the extension just before sale is ideal.
Summary
If you’re thinking of selling your flat in the coming years, treating the lease extension not just as a cost but as a sale-prep investment is a smart reframing. It shifts the mindset from “cost to me now” to “enhancement of market readiness” and that is something many buyers pay for, often quietly, by being willing to proceed more swiftly and at a stronger offer level.
If you’d like to discuss getting your flat in Brighton, Kent or Surrey ready for sale particularly where the lease remaining is under 90 years, I’m happy to speak with you. With a fixed-fee lease extension valuation and clear commentary about timing and market impact, you’ll be better placed to decide whether now is the right moment to act.