Lease Extensions
Increase Your Lease by 90 Years
As the owner of a flat, you probably own a leasehold as opposed to a freehold interest in the property. This means you do not own the flat forever but for a finite period of time. You have a legal right to force the freeholder of the property to sell you a new extended lease.
From the leaseholder's perspective, getting a valuation from a surveyor is important because it helps ensure you're not overpaying when extending your lease. Essentially, it's about making sure you're getting a fair deal. While the process might seem complicated, getting a valuation simplifies things by giving you a clear idea of what your lease extension will cost. It's like having a professional guide to help you navigate through the process, ensuring transparency and fairness every step of the way.
-
A leaseholder can extend the lease by 90 years. The lease sets out the term of ownership, usually 125 years. An important point is the lease term does not start when you purchase the flat. So, although you may have purchased a lease with a term of 125 years, there may only be 75 years remaining.
Fortunately, you the leaseholder have a statutory right to force a freeholder to extend your lease by 90 years. If your current lease has 75 years remaining, once you extend your lease, you will have a new lease of 165 years.
-
As your lease gets shorter, the property becomes less valuable. By extending a lease length, you are protecting or improving the value of a flat.
Leaseholders regularly contact us to discuss any Leasehold solutions and to undertake the valuation for a lease extension when they have put their property on the market for sale as a shorter lease makes it more difficult to sell.
From a purchaser’s point of view, it may not be possible to get a mortgage on a short lease. Extending a lease makes the property easier to sell and easier to get a mortgage from a bank to purchase.
-
You will need to instruct Olden Property to undertake a valuation on your behalf. This valuation will set out the amount you should expect to pay for a lease extension.
You will then need to instruct a solicitor to send a statutory letter to the freeholder confirming you are extending your lease. This notice will include the amount Olden Property recommends in the valuation report. We work with many excellent solicitors specialising in lease extensions we would be happy to introduce you to should you choose to work with Olden Property. .
A detailed guide, including qualification criteria, can be found by clicking on this Lease Extension information sheet.
-
The price you pay to extend your lease is known as the premium. The premium is made up of two or three elements depending on your lease length when you start the process. Compensation for ground rent, compensation for the fact the lease is 90 years longer and finally, ‘marriage value’. The property's overall value will increase due to the lease extension. If your lease has less than eighty years left when you apply for the lease extension, 50% of this increase in value is payable to the Freeholder.
If you would like to estimate the potential cost of extending your lease, you can use this lease extension calculator provided by the government.
Marriage Value
The law around lease extension is changing, and Marriage Value makes up a major part of these proposed changes. It is much cheaper to extend your lease when you have eighty or more years remaining, as Marriage Value is not applicable. This may change in the coming years, but our advice now is, “if your lease is getting close to 80 years, extend it immediately”. If you wait until the lease has less than 80 years remaining, you could end up doubling the lease extension cost.
-
Olden Property undertake many lease extension valuations and negotiations every year. We predominantly act for leaseholders. We have the expertise if it is necessary to act as an Expert Witness at the Lands Tribunal.
We aim to make the process as clear as possible so you understand where you are in the process at every step of the way. You will have one point of contact from your initial inquiry to the completion of the lease extension if you choose to work with Olden Property. It can appear a complicated process, but it is not. There are strict rules governing the lease extension process and valuation methodology. You should never pay more than you are legally obliged to, and we will ensure you do not.
For more frequently asked questions on Lease Extensions click here
Desk Valuations – Fixed Fee £450 + VAT
If you’re a flat owner preparing to extend your lease, the first step is understanding what your premium is likely to be. At Olden Property, we offer clear, RICS-compliant desktop lease extension valuations for a fixed fee of £450 + VAT, giving you reliable professional advice without the cost of a full inspection. If your flat is approaching the 80-year threshold, obtaining a professional valuation early can make a real difference to the premium you pay. At Olden Property, we offer RICS-compliant lease extension valuations tailored to leaseholders and freeholders across London, Kent and the South East.
This is a cost-effective, fixed-fee option that provides an informed estimate of the likely premium payable to extend your lease, based on current market data, local comparables, and leasehold relativity graphs, all without the need for a site visit. It’s an ideal starting point before serving a Section 42 Notice or negotiating informally with your freeholder.
When a more detailed inspection is required, for example, where the property has been altered or includes multiple flats, we can provide a full inspection valuation supported by detailed market evidence and formal reporting in accordance with the RICS Red Book.
