Every year your lease gets shorter, your property gets harder to sell and more expensive to extend. Below 80 years, costs escalate sharply. The Leasehold Reform Act 2024 changes the rules - but it's not in force yet.
This guide is for general information only - not legal advice. Always seek professional advice before acting.
Your property's value is directly tied to the length of your lease. Below 80 years, mortgage lenders refuse to lend and buyers walk away. Understanding the process, the costs, and the new law is essential.
Below 80 years, "marriage value"Marriage value is the increase in the property's value once the lease is extended. Under the Leasehold Reform, Housing and Urban Development Act 1993, the freeholder is entitled to 50% of this increase once the lease falls below 80 years. Leasehold Knowledge applies - your freeholder is entitled to half the increase in property value. A lease at 75 years can cost tens of thousands more to extend than one at 85 years. Every year you delay makes it worse.
Lease extension premiums increase every year your lease gets shorter. Waiting even 2-3 years can add thousands. Professional valuation fees, legal costs, and the premium itself all add up. Acting early is almost always cheaper.
The Leasehold and Freehold Reform Act 2024Received Royal Assent on 24 May 2024. Extends lease extensions to 990 years at peppercorn ground rent and abolishes marriage value. Most provisions require secondary legislation before coming into force. House of Commons Library abolishes marriage value and extends the standard term to 990 years at zero ground rent. But most provisions are not yet in force. Implementation timelines remain uncertain after legal challenges caused delays.
Most lenders require at least 85 years remainingMortgage lender requirements vary, but most require a minimum of 85 years unexpired at the time of application. Below 70 years, very few lenders will consider the property. Homeowners Alliance on the lease at the time of application. Below 70 years, very few will lend at all. Short leases reduce your property's market value significantly and limit your buyer pool to cash purchasers.
Work through these yourself. Or upload your lease and ask LEASE-iQ.
Find the original lease start date and term. Calculate how many years remain. If you're approaching 80 years, act now - every year below 80 adds significantly to the cost.
The premium is calculated using the capitalisation rate, relativity, and (currently) marriage valueThe valuation methodology is set out in Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993. It requires specialist knowledge. The LFRA 2024 will introduce a new prescribed rates system once in force. Legislation.gov.uk. Get a specialist leasehold valuation from a surveyor - not a general estate agent.
You must have owned your flat for at least two years (this requirement was removed on 31 January 2025The Leasehold and Freehold Reform Act 2024 (Commencement No 2) Regulations 2025 removed the two-year ownership requirement on 31 January 2025. Leaseholders can now serve notice immediately upon registration of ownership. Boyes Turner under the new Act). You can extend under the existing law now, or wait for the new Act - but waiting carries risk.
This is the formal notice to your freeholder requesting a lease extension. Once served, you have legal protection against the freeholder selling or acting to your disadvantage. The process takes 6 to 12 months.
If your freeholder does not agree to your proposed premium, you can apply to the First-tier Tribunal (Property Chamber)The First-tier Tribunal (Property Chamber) determines lease extension premiums where the parties cannot agree. Most cases settle before a full hearing. GOV.UK for a determination. Most cases settle before tribunal.
⚠️ Important: If the new Act's provisions are not yet in force when you need to extend, you'll be extending under the existing law - including marriage value. Don't assume the new rules apply. Check the current implementation status and seek professional advice.
Upload your lease. Copy this prompt:
The free LEASE-iQ analysis told you what your lease says. Now you need to act on it. Here's how to approach the process with confidence, what to expect, and how to get a solicitor briefing drafted if you need one.
You've used the free analysis to understand your lease terms. Now let LEASE-iQ draft a detailed briefing for your solicitor covering term, ground rent, marriage value, and qualification, so you're prepared before the first meeting.
Based on your lease analysis, LEASE-iQ will generate:
The Leasehold Advisory Service (LEASE) provides free, independent advice on lease extensions. They handle thousands of extension enquiries every year and can help you understand the process, the costs, and your options.
Contact LEASE (free) →Lease length directly affects property value, mortgage eligibility, and extension cost.
The two-year ownership requirementRemoved on 31 January 2025 by the Leasehold and Freehold Reform Act 2024 (Commencement No 2) Regulations 2025. Leaseholders can now serve notice immediately. Boyes Turner for lease extension has already been removed (31 January 2025). Other key provisions, including abolition of marriage valueThe LFRA 2024 abolishes the requirement to pay marriage value on leases below 80 years. This provision requires secondary legislation and consultation on prescribed valuation rates before it can come into force. Implementation timelines remain uncertain after legal challenges. House of Commons Library, require further legislation. Implementation timelines remain uncertain.
If you're a director of an RTM, SoF, or management company, or the freeholder, you'll be involved in the lease extension process. Understanding your obligations and the leaseholder's rights protects everyone.
You have a legal obligation to respond within two months. Failure to respond can result in the leaseholder's proposed terms being accepted by default.
Commission a specialist leasehold valuation. The premium must reflect the property's current value, the unexpired term, and (until the Act is fully implemented) marriage value.
If multiple leaseholders extend, it affects the freehold value. Consider whether collective enfranchisementCollective enfranchisement allows qualifying leaseholders to jointly purchase the freehold of their building under the Leasehold Reform, Housing and Urban Development Act 1993 (Part I, Chapter I). At least half of qualifying tenants must participate. Legislation.gov.uk (buying the freehold) might be more appropriate for the building.
Document every step of the process. Tribunal cases are won or lost on evidence. BLOCK-iQ helps you maintain a complete audit trail.
BLOCK-iQ helps directors manage compliance obligations, track lease extension requests, and maintain transparent records throughout the process.
See how BLOCK-iQ works →Upload your lease (any age, any format). Ask a question in plain English. Get a clause-cited answer in seconds - not hours of reading.
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