Extending your lease

It can be hard to sell your home if the lease has less than 95 years left. When it drops below 80 years, it significantly affects the property’s market value and the premium you might have to pay.

If you’re not sure how long you have left on your lease, you can download the leasehold title from HM Land Registry (£3).

You will need to submit this with your application if you choose to go ahead.

Your legal right

If you’ve had a long lease on your home (originally for 21 years or more) and you’ve been the leaseholder for at least the last 2 years, you have the right to extend your lease under the Leasehold Reform Housing and Urban Development Act 1993.

The Leasehold and Freehold Act 2024

See information on what the Leasehold and Freehold Act 2024 will mean for lease extensions once it comes into force, and what should lessees and lessors do in the meantime?

Cost of extending your lease

The cost of extending your lease depends on the property’s value and how long is left on the lease. As the lease gets shorter, the impact on value increases. If your lease has less than 80 years left, the property’s value usually drops more significantly, and the cost to extend the lease rises.

If your lease has 80 or more years remaining, you will need to compensate the landlord for:

If your lease has less than 80 years remaining, you will also need to pay the landlord a share (usually 50%) of the value added to your property by extending the lease.

For leases of 80 years or more, the cost is typically about £4,000 to £6,000 (although it can be higher for more valuable properties). There will also be legal and valuation fees to pay (see below).

Lease extensions are usually exempt from Stamp Duty Land Tax (SDLT).

Mortgage lenders are often willing to allow borrowers to add these costs to their mortgage since it generally increases the value of the property.

For more guidance, you can visit Leasehold Advisory Service, which offers independent advice and an approximate price calculator.

How to extend your lease

If you’re a qualifying leaseholder, you have 2 options to extend your lease:

Choosing either route does not commit you to proceed with extending your lease, but the cost is likely to go up over time as your lease gets shorter and property values rise.

Please note: the landlord's valuation and admin fee (see below) must be paid in advance and is non-refundable. Make sure you have the necessary funds before proceeding.

Informal process for extending your lease

Costs

If you’re unhappy with the outcome, you can still go through the formal route, but it may take more time and cost more

Apply to extend your lease

Formal process for extending your lease

Costs

If you disagree with the landlord's offer and your surveyor cannot negotiate an agreed value, the case can be referred to an independent tribunal.

To begin, your solicitor should serve notice under Section 42 of the Leasehold Reform Housing and Urban Development Act 1993 to housingmatters@enfield.gov.uk

Always use a solicitor to make and register the final changes to the lease and title with HM Land registry. Legal fees will be higher if you have a mortgage, as the solicitor will also need to act for the mortgagee.

You should get an estimate from your solicitor but, as a guide, this could cost around £1,000 + VAT. Legal costs under the formal route (including service of official notices) may be higher.

Finance

Before proceeding with the extension, make sure you can access or raise the necessary funds (for example, from savings or remortgage) to pay the landlord’s premium and the statutory deposit (usually 10%). You may need to pay this before selling your flat.

Date of valuation

The valuation and lease length are fixed from the date you paid your invoice valuation fee (informal route) or the date of your legal Section 42 notice (formal route).

Property inspection

You will need to provide us with contact details for arranging a property inspection for valuations. Inspections take place 9am to 5pm, Monday to Friday and take up to 30 minutes. The valuer will not collect keys, so we ask for you or someone you trust to be present during this time.

The valuer will take photographs and measurements, so access to all rooms and areas is needed. You may need to provide evidence of the cost and installation date of any improvements.

Monies owed to the landlord

You must pay any outstanding ground rent or service/major works charges before legal completion.

Further queries

If you have more questions, email us at housingmatters@enfield.gov.uk and we will get back to you as soon as possible.

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