Extending your lease
It can be difficult to sell your home if your lease has fewer than 95 years remaining. Once the lease drops below 80 years, it can significantly affect your 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 include this with your application if you decide to go ahead.
Your legal right
If you have a long lease on your home (originally for 21 years or more), you have the right to extend your lease under the Leasehold Reform, Housing and Urban Development Act 1993.
At present, lease extensions through Enfield Council follow the existing legislation, which allows qualifying leaseholders to extend their lease by 90 years.
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:
- loss of ground rent remaining on your current lease
- loss of the potential right to reclaim the property at the end of the lease
- loss in any development or other value reduced due to the lease extension
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.
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:
- Formal route – follow the process set out in the Leasehold Reform Housing and Urban Development Act 1993
- Informal route – some landlords offer a simpler, less costly, and often quicker process
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
Complete a questionnaire
Fill out a simple form. If you qualify to extend your lease, you will need to pay the council’s non-refundable valuation fee.
No strict deadlines
There are no strict timescales, and you cannot change other lease terms. The council will usually offer a fair, non-negotiable price within 4 to 6 weeks.
Accepting the offer
You have 60 days from the date of the offer letter to accept the offer and complete the purchase.
If you do not complete the purchase within 60 days, the offer will expire and a new offer will need to be issued.
Before we can issue a new offer, you must pay:
- a revaluation fee of £480 (including VAT)
- an administration fee of £200
You must pay these fees before your application can continue.
Non-transferable
Informal applications cannot be transferred. If you’re selling your property, a formal application may be more suitable.
Costs
- Council’s valuation fee: £480 (including VAT)
- Council’s legal costs £1,200
- Administration fee: £200
If you’re unhappy with the outcome, you can still go through the formal route, but it may take more time and cost more
Formal process for extending your lease
Serve official notices
Your solicitor will serve official notices under Section 42 of the Leasehold Reform Housing and Urban Development Act 1993.
Strict deadlines
The process has strict deadlines, but you can appeal the timescale, price and council’s costs, to the Lands Tribunal or County Court.
Professional help
Statutory notices are usually served by a solicitor, and you will likely need professional valuation advice, which incurs fees.
Transferrable applications
Formal applications can be transferred which is useful if you’re selling your property. Consult your solicitor first.
Costs
- Council’s valuation fee: £480 (including VAT)
- Council’s legal costs: £1,600
- Administration fee: £200
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 leaseextensions@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 leaseextensions@enfield.gov.uk and we will get back to you as soon as possible.