If you own a leasehold home, your lease is a depreciating asset. As the remaining term decreases, it can become harder to sell or secure a mortgage. Extending your lease early helps protect your investment, maintain your property’s marketability, and give you long-term peace of mind.
Below, we explain your options, the steps involved, and how Chapter Law supports you throughout the process.
Why Lease Extensions Matter
Under current law, qualifying leaseholders can extend their lease by an additional 90 years, with ground rent reduced to a peppercorn (meaning no ground rent to pay).
The 80-year mark is particularly important. Once your lease drops below 80 years, the premium you pay usually increases significantly because of “marriage value”. Planning ahead can save you thousands and prevent delays if you wish to sell or remortgage.
Your Options for Extending a Lease
There are two main routes to a lease extension:
1. Statutory Lease Extension (Your Legal Right)
The Leasehold Reform, Housing and Urban Development Act 1993 allows most qualifying leaseholders to extend their lease by 90 years and reduce ground rent to £0.
You may be eligible if:
- Your lease was originally granted for 21 years or more, and
- You have owned the property for at least two years.
How the statutory process works
- A Section 42 Notice is served on the landlord, proposing your premium and any adjustments to the lease.
- The landlord must respond with a counter-notice within at least two months.
- Both parties then have six months to negotiate.
- If terms cannot be agreed, an application to the First-tier Tribunal may be required.
A useful benefit: if you sell your property, you can assign your claim to the buyer, allowing them to continue the process without waiting two years.
Under this route, you pay your own professional fees and the landlord’s reasonable legal and valuation costs.
2. Voluntary (Informal) Lease Extension
This option is negotiated directly with the landlord. While the landlord is not obliged to agree, they often will — and terms are flexible.
What can be negotiated?
- Length of the new lease
- Premium
- Ground rent terms
- Whether the two-year ownership rule is waived
A voluntary extension can sometimes be completed more quickly, but it offers less certainty, as the landlord is free to withdraw or propose terms less favourable than the statutory route.
Statutory vs Voluntary: Key Differences
| | Statutory | Voluntary |
| Two-year ownership requirement | Yes | No |
| Landlord obliged to grant extension? | Yes | No |
| Pay landlord’s fees? | Yes | Usually, but negotiable |
| Length of extension | Fixed: +90 years | Negotiable |
| Ground rent | Reduced to peppercorn | Negotiable |
Upcoming Changes to Leasehold Law
The Government has proposed reforms to simplify the lease extension process — including the potential abolition of marriage value. No implementation date has been confirmed, and until changes take effect, the cost of extending a shorter lease will continue to rise.
If your lease is approaching or below the 80-year threshold, taking early advice remains crucial.
How Chapter Law Helps You
Our specialist lease extension team guides you through the process from start to finish.
⭐ 1. Eligibility Check
⭐ 2. Serving the Notice
⭐ 3. Working With Valuers
⭐ 4. Legal Drafting & Negotiation
⭐ 5. Completion & Registration
How Long Does a Lease Extension Take?
Most lease extensions take several months. The exact timeframe depends on:
- How quickly the landlord responds
- The complexity of negotiations
- Valuation or legal issues that may arise
- The speed at which documents are exchanged
We take a proactive, hands-on approach to help keep everything moving smoothly.
Why Choose Chapter Law?
✔ Clear, jargon-free advice
We explain your options simply and transparently.
✔ Regular updates
You’re never left wondering what happens next.
✔ Specialist expertise