Last updated: December 2025. This guide reflects the current position under the Leasehold Reform, Housing and Urban Development Act 1993 and the Leasehold and Freehold Reform Act 2024, as far as their provisions are in force. It is a general overview only and not legal advice. Always obtain up-to-date advice from a specialist solicitor and chartered surveyor before acting.

Extending a long lease on a flat or house in England and Wales can be technical and expensive. Having an independent Chartered Surveyor on board early helps you understand the figures, avoid costly mistakes and negotiate confidently with your freeholder (landlord).

Castle Surveyors Limited specialises in lease extensions and leasehold enfranchisement for properties across Dorset, Hampshire and the South Coast, acting for Leaseholders and Freeholders. We provide RICS-qualified valuation advice and clear, practical guidance so you know your options at each stage.

For a FREE, no obligation chat call 0800 246 1002 or email enquiry@castle-surveyors.co.uk.

Why extend your lease?

As the unexpired term of your lease (years left until it ends) reduces, the value and mortgageability of your flat or house can fall, while the value of the freeholder’s interest can increase.

• Protect resale value: Buyers and lenders are often cautious of leases under 85 years (currently marriage value is payable below 80 years) and some lenders may refuse lending on leases with a relatively short unexpired lease.
• Improve mortgage options: A longer lease with low or peppercorn ground rent may be easier and cheaper to finance.
• Reduce ground rent risk: Statutory lease extensions reduce ground rent to a peppercorn (effectively zero).
• Increase security: Long leases can give security similar to a “virtual freehold”.

Key leasehold reforms – where are we now?

The Leasehold and Freehold Reform Act 2024 is being brought into force in stages. In broad terms it provides for:

• Standard 990-year lease extensions for most flats and houses, with ground rent reduced to a peppercorn, once the relevant provisions are commenced.
• Abolition of statutory marriage value (the extra amount payable on shorter leases under the current (as at Dec 2025) regime).
• Removal of the historic two-year ownership rule for statutory lease extension and enfranchisement claims (in force from 31 January 2025).
• Reformed valuation assumptions, including a cap on the ground rent element, and limits on landlords’ ability to recover legal costs from leaseholders.

Important: Not all valuation-related provisions are fully in force and practice is evolving. Always check the current legal position at the time you intend to start your claim and ensure robust professional and legal advice is obtained at the outset of the process.

Marriage value – what does the change mean?

Under the current (Dec 2025) rules, once a lease fell below 80 years, statutory lease extension premiums included marriage value – an extra payment representing the uplift in the flat’s value after the lease was extended. The freeholder was entitled to 50% of that uplift because by extending the lease the freeholder has lost the ability to recover their property for a further number of years, the marriage valuation calculation attempts to estimate that reduction.

Under the 2024 reforms, statutory marriage value is being removed from the premium calculation. However, valuation practice and tribunal case law are adjusting to the new regime, so leaseholders with shorter leases should obtain up-to-date professional advice on timing and likely costs as it may be that these or even other factors are in play since this article was written in December 2025.

Am I eligible to extend my lease?

For most flats, you will usually qualify for a statutory lease extension if:

• The flat is held under a long lease originally granted for more than 21 years; and
• You are the registered leaseholder at HM Land Registry.

Historically, you had to own the flat for at least two years first before you could apply to extend the lease. Howver from 31 January 2025, section 27 of the 2024 Act removed that two-year ownership requirement for most statutory lease extensions and enfranchisement claims. Some specialist and exempt landlords (for example certain Crown, National Trust or charitable bodies) may still be treated differently, so always confirm eligibility with a specialist adviser.

How long can I extend my lease for?

Under the 1993 Act, a successful statutory claim for a flat adds 90 years to the existing term and reduces ground rent to a peppercorn. For houses, different rules apply under the 1967 Act.

The 2024 Act provides for a new standard 990-year extension term for most qualifying flats and houses at a peppercorn ground rent, once the relevant provisions are commenced. In practice, the exact term and ground rent will depend on whether you proceed formally under statute or agree an informal (negotiated) deal direct with the freeholder.

What are the potential costs?

There is no fixed government tariff for lease extension premiums. Under the current statutory framework, the premium is assessed by specialist valuers and broadly reflects:

• Diminution in the freeholder’s interest: the value the freeholder loses because the lease is being extended and ground rent reduced (capitalised ground rent plus reversionary value).
• Marriage value (transition period only): historically, an extra element on shorter leases representing 50% of the value uplift for the flat; this is now being removed under the 2024 reforms.
• Compensation (if applicable): in limited cases, additional compensation if the freeholder suffers a specific loss directly arising from the new lease.

On top of the premium, you should budget for:

• Your own professional fees – valuation and legal costs.
• A contribution to the freeholder’s reasonable professional costs – subject to new statutory limits on cost recovery.
• Land Registry and other disbursements.

Premiums vary widely depending on location, flat value, lease length, ground rent and market conditions. Our AI calculator provides a starting point, but a RICS-compliant valuation is essential before deciding whether to begin the process, serving formal notices or agreeing terms.

What is the formal procedure? (Section 42 notice)

For most qualifying flats, the formal process starts with a Section 42 notice under the 1993 Act. This is a technical legal document and must be drafted and served correctly, it’s usually best to have your legal advisers serve any legal notices as a mistake can be costly.

1. Appoint your team: a chartered surveyor for valuation and negotiation, and a solicitor experienced in leasehold reform.
2. Obtain a valuation: your surveyor advises on the likely premium and recommends a realistic but defensible figure for the Section 42 notice.
3. Serve Section 42 notice: your solicitor serves the notice on the correct landlord. This triggers a statutory timetable.
4. Landlord’s counter-notice: normally within two months, the landlord serves a Section 45 counter-notice stating their proposed terms.
5. Negotiations: surveyors negotiate to narrow the gap and agree premium and terms where possible.
6. Tribunal if needed: if agreement is not reached in time, either party can apply to the First-tier Tribunal (Property Chamber) to decide the premium and disputed terms.
7. Completion and registration: once agreed or determined, the new lease is completed and registered at HM Land Registry.

Dates and service requirements are strict. Missing a deadline can invalidate the claim, so professional input is essential.

What if we cannot agree?

Landlords and leaseholders can agree a deal at any stage, whether the route is formal or informal. In practice, most negotiations are handled by the respective surveyors. It’s worth noting that some Freeholders (Landlords) may say they’re happy to conclude things informally, but really they are simply trying to delay matters in the hope they’ll gain. Adopting the formal lease extension process, as summarised in this article, can help prevent that occurring.

If agreement cannot be reached within the statutory timetable, either party can apply to the First-tier Tribunal (Property Chamber) for a binding determination. Tribunal proceedings add time and cost, so our aim at Castle Surveyors is always to secure a fair, negotiated settlement wherever possible, while preserving your tribunal rights if required.

Formal vs informal lease extensions

Leaseholders can sometimes agree an informal (voluntary) extension directly with the freeholder, outside the statutory process. This can occasionally be quicker or more flexible but may also:

• Include escalating or onerous ground rent clauses that cause lender problems.
• Offer a shorter term than a statutory extension.
• Provide less protection if negotiations break down.
• Delay matters if the Freeholder is merely trying to do so, say to allow the term to drop below 80 years.

Our general recommendation is to start with the formal statutory route wherever possible. You can still settle informally on acceptable terms along the way, but you retain the protection of the statutory timetable and tribunal backstop.

What about collective enfranchisement?

Instead of (or as well as) extending individual leases, qualifying leaseholders in a block can join together to buy the freehold (collective enfranchisement). The 2024 Act also reforms aspects of enfranchisement valuation and eligibility.

Collective enfranchisement can offer better long-term control over service charges, management and future lease terms, but the valuation and legal process are more complex. We can advise whether a joint purchase of the freehold is realistic and cost-effective for your building and provide RICS-backed valuations and negotiation support.

How Castle Surveyors can help

• Initial telephone advice: free, no obligation call to understand your lease, goals and timescales.
• RICS-compliant valuation: clear reporting on likely premium ranges and strategy, suitable for your solicitor.
• Support with Section 42 notices: working alongside your solicitor to ensure figures and assumptions are robust.
• Negotiation with the freeholder’s team: firm but constructive negotiation aimed at a fair settlement.
• Tribunal support: preparation of expert evidence and attendance as expert witness where needed.

We are pleased to assist you with your lease extension or enfranchisement and are available for a FREE NO OBLIGATION chat in the first instance. Call us on 0800 246 1002, email enquiry@castle-surveyors.co.uk or visit our enquiry page to get started: click here to book a survey.