Lease Extension Myths: What Leaseholders Often Get Wrong — and What’s Really True

When it comes to extending your lease, there’s a lot of conflicting advice online  and plenty of myths that can end up costing leaseholders time and money.
At Olden Property, we spend much of our time helping clients cut through the noise and make informed decisions based on the facts.

Here are some of the most common lease extension myths, and the truth behind them.

Myth 1: “You only need to extend your lease when it drops below 80 years.”

❌ Wrong.
The 80-year mark matters because that’s when marriage value starts applying,  a premium that increases the cost of your extension.
But waiting until then can be an expensive mistake.

In reality, the best time to extend is when your lease is in the mid-80s. Premiums are lower, lenders are comfortable, and you keep flexibility if you decide to sell or refinance.
Waiting too long only adds cost and stress.

Myth 2: “Online calculators tell you what it will cost.”

❌ Not quite.
Online calculators use generic averages for flat value, yield and relativity  but those figures can vary dramatically between locations and property types.

A flat in Brighton, a conversion in Tunbridge Wells, and a purpose-built block in Croydon might all have the same lease length but very different premiums.

✅ A proper RICS valuation reflects local comparables, building condition, and ground rent structure  and gives you figures you can actually use in negotiation.

Myth 3: “If I extend informally, it’s always cheaper.”

❌ Sometimes, but not always.
Freeholders often offer “informal” deals outside the statutory process. These can look attractive, lower fees, faster timescales but they sometimes include less favourable terms, like:

• Higher new ground rent clauses

• Shorter extensions (e.g. 90 years instead of 999)

• Delayed start dates or rising rents

Always have these reviewed. A statutory (Section 42) lease extension usually provides a 90-year addition and reduces ground rent to zero. That’s worth far more in the long term.

Myth 4: “It’s too late to extend if my lease is already short.”

❌ Never too late — but act fast.
Even if your lease is under 80 years (or even 50), you can still extend. The premium will be higher, but a professional valuer can model several scenarios so you know the cost difference between, say, 60 years and 70 years.

We often help buyers of short-lease flats plan a purchase-plus-extension strategy — showing how value increases post-extension, helping secure funding or resale potential.

Myth 5: “It’s too complicated - I’ll just wait until I sell.”

❌ Delaying can derail a sale.
Buyers and lenders both look closely at lease length. A flat with 77 years left often attracts fewer offers or price reductions.
Extending before marketing your property removes uncertainty and gives buyers confidence - you’ll almost always recover the cost in the sale price.

The Truth: Knowledge and Timing Save You Money

Lease extension valuation is part law, part market evidence, and part strategy.
At Olden Property, we provide independent RICS valuations across Kent, Sussex, Surrey and London, guiding leaseholders through both statutory and informal routes.

We don’t just calculate a figure , we explain the “why” behind it, helping you make confident, informed decisions.

If You’re Unsure Where to Start

If you’re considering extending your lease or buying a short lease flat, get in touch for an initial discussion.
We’ll outline your options, model potential outcomes, and help you plan the most cost-effective route.

Your flat’s lease length shouldn’t be a liability,  with the right advice, it becomes a manageable, predictable investment.