Leasehold Extensions
In short
Every leasehold property has an expiry date, and the shorter the time left on the lease, the faster it loses value — so extending it before that happens is one of the most valuable things a leaseholder can do. Call 08082747557 for practical, cost-effective advice on your lease extension.
Why the length of your lease matters
When a lease ends, ownership of the property reverts to the freeholder — so as the years on a lease run down, the property becomes progressively less valuable and harder to mortgage or sell. This effect accelerates sharply once a lease falls below 80 years remaining: letting it drop under that threshold can make the property much harder to sell, and considerably more expensive to extend, because of something called “marriage value.”
What is marriage value?
Where a lease has 80 years or fewer left to run, extending it increases the property’s value — and under the current rules, the freeholder is entitled to share in that increase, typically around 50% of it, as compensation. This is on top of the usual premium paid to extend. Extending well before you hit the 80-year mark avoids this additional cost altogether.
Not sure how many years are left on your lease? Call 08082747557 and we’ll help you work out your options.
Formal and informal lease extensions
If you’ve owned your leasehold property for at least two years and your original lease was for more than 21 years, you’ll typically have a statutory right to extend. There are two routes to doing so:
- Informal extension — negotiating directly with your freeholder, which can be quicker where both sides are willing, but leaves the price and terms more open to negotiation
- Formal (statutory) extension — using your legal right to extend, with a tribunal available to resolve disagreements over the price or terms if you and the freeholder can’t agree
If extending isn’t the right answer for your situation — for example, if enough of your neighbours also want more control over the building — it may be worth considering buying the freehold instead, or exercising your right to manage.
Related Services
- Buy the freehold with other leaseholders instead Leasehold Enfranchisements
- Take over management of your building Right to Manage
- Understand your position as a leasehold owner Leasehold Properties
- Instruct a solicitor to handle your house move Conveyancing
- Get general advice on a housing dispute Housing Disputes