Online Lease Extension Calculator
To get an idea of what a leasehold extension may cost you, use our free, online Lease Extension Calculator
Leasehold and Freehold Reform Act 2024
The introduction of the Leasehold and Freehold Reform Act 2024 (LAFRA) is set to bring significant changes for leaseholders and property owners across England and Wales. The Act increases the statutory lease extension term from 90 years to 990 years, abolishes marriage value, and ensures that all extended leases carry only a peppercorn (£0) ground rent. In addition, the Government has proposed introducing a £250 per annum cap on ground rent for existing leases. This cap is intended to protect leaseholders who still pay ground rent under historic leases that predate the Leasehold Reform (Ground Rent) Act 2022. The proposal has not yet come into force, but once implemented, it will apply only to existing leases that continue to attract ground rent, ensuring no leaseholder pays more than £250 annually. New or extended leases will continue to be restricted to a peppercorn (£0) ground rent. Once the Act comes into force, it is expected to impact the overall cost of extending a lease, potentially making the process more affordable for many leaseholders.
However, as the legislation has not yet taken effect and the detailed regulations are still awaited, we cannot provide definitive advice on its practical impact until the final provisions are implemented. For a detailed overview of the Act and future updates, read our blog: The Leasehold and Freehold Reform Act 2024.
About Leasehold Extensions and the Leasehold Extension Calculator
A lease is essentially a contract that creates a relationship between a landlord and tenant. Where a landlord has an estate in the land, a lease will grant the tenant a leasehold estate in that land too. Both the terms of a lease and the way in which a lease can be ended are subject to regulation.
Formal Process: Section 42
The most formal way of extending your lease is through a Section 42 notice. This notice is essentially a formal request from a leaseholder to extend their lease on a property. As a leaseholder, you are able to serve a Section 42 notice if your lease is a long lease (granted for a term of 21 years or longer. Under the Leasehold and Freehold Reform Act 2024, leaseholders no longer need to have owned the property for two years before serving a Section 42 notice.
If you decide to serve a section 42 notice, then you must be aware that this notice must be complete with no inaccuracies. Any faults in this notice can lead to a freeholder applying to the court to have the notice dismissed. Should this occur, you are prevented from being able to apply again for another 12 months. It is crucial to get expert advice from a leasehold solicitor.
Our lease extension solicitors are here to explain the legal process in full, including fees which will be payable and answers to frequently asked questions.
To obtain a lease extension estimate, use our free, online Lease Extension Calculator.
Why should I extend my lease?
If you own a property that has a lease, ownership of that lease lasts for a certain period of time or term of years. As the lease gets shorter, the number of years left on the lease gets lower resulting in the value of the lease decreasing, and the cost of extending your lease rises.
This is why it is often a good idea to increase the terms of your lease at an appropriate time. Sometimes it becomes increasingly difficult to sell a property with a short lease because mortgage lenders are often reluctant to lend money on such properties.
When should I apply for a lease extension?
In general, it is probably best for you to think about extending your lease before it reaches 80 years or below. The Leasehold and Freehold Reform Act 2024 abolishes “marriage value,” so the sharp cost increase below 80 years will no longer apply once the Act’s valuation reforms take effect. However, until those provisions are commenced, the current 80-year threshold remains relevant.
If you would like to sell your property, then you should extend the lease if it is below 80 years. When a lease is extended, it adds value to the property, sometimes this can be a substantial amount.
Leasehold and Freehold Reform Act 2024
The introduction of the Leasehold and Freehold Reform Act 2024 (LAFRA) has the potential to affect the lives of property owners. The Act increases the statutory lease extension term from 90 years to 990 years, abolishes marriage value, and ensures all extended leases carry only a peppercorn (£0) ground rent. If you are looking to extend your lease, then your costs and situation may be affected by this new reform, but then again it may not. For more information about LAFRA and how it could affect you, check out our blog here: The Leasehold and Freehold Reform Act 2024
Lease Extension for Share of Freehold
Most leases are extended by either serving a section 42 notice on the property’s freeholder or by negotiating an informal lease extension with the freeholder – but what do you do if you own a share of the freehold yourself?
Most share of freehold property owners will extend their lease by way of an informal lease extension, which means they will agree on the length, premium and terms of their lease extension with the other freeholders. You do not need to meet any statutory requirements to extend your lease informally and can extend your lease by up to 999 years for no premium (assuming your fellow co-freeholders agree to let you do this).
However, you and co-lessees could find yourself in a position where the length of your respective lease terms vary and therefore in theory the premiums payable would also vary particularly where some leases are over 80 years and others have less than 80 years to run. Disputes can also occur where some lessees have in the past paid a premium to their freehold company to extend their leases and now feel justified to demand that other lessees, who did not participate at the time, should also do so when later requesting an informal lease extension. In these situations, it is helpful for all parties to use our lease extension calculator to assess whether they can reach a compromise. In the event they cannot do so, the lessee is still entitled to follow the statutory procedure by serving a section 42 notice on the co-freeholders or freehold company in which they hold a share. We are happy to advise you on these contentious matters should the need arise or handle the transaction where agreement is reached. Where you have a mortgage, it is important to note that you will require your lenders consent and we can help in this regard being on the panel of almost all UK lenders.
Do You Pay Stamp Duty on a Lease Extension?
In most cases, you won’t need to pay Stamp Duty Land Tax (SDLT) on a lease extension, especially if you’re not paying a premium for a share of freehold. SDLT generally applies only when the premium is £40,000 or more and the property isn’t your main residence. For buy-to-let or investment properties, SDLT is usually charged at 3% of the premium.
If the lease extension premium is below £40,000, no SDLT is due—but if it’s over £40,000, you must still submit an SDLT return, even if no tax is payable. Always check with your conveyancer, as SDLT thresholds and rules can change.
Limited companies and SPVs may face additional stamp duty liability. Even without paying a premium, SDLT could still be based on the market value of the lease extension. Our specialist SPV conveyancing solicitors can help you understand your SDLT position and manage your lease extension smoothly.
Extending my Lease
Extending your lease requires expert advice and attention to detail. By completing the lease extension process, you are able to increase your property’s value and chances of a buyer obtaining a mortgage.
However, it is vital to extend you lease at the right time in order to avoid high fees or trouble selling your leasehold property. You can ask the landlord to extend your lease at any time.
Our lease extension solicitors are here to explain the legal process in full, including fees which will be payable and answers to frequently asked questions.
For more on what the lease extension process looks like, check out our blog here: The Lease Extension Process
How we can help
Our residential property solicitors have vast experience in handling various lease extension matters and pride ourselves in offering an efficient and reliable service. We can advise on informal lease extensions, statutory or section 42 lease extensions and share of freehold multiple lease extensions.
Our experienced lease extension solicitors will deal with your matter efficiently, and negotiate the ensure you get the best possible premium. For more information please visit our Conveyancing page. For an appointment at any of our offices, email us at solicitor@starckuberoi.co.uk or call 020 8038 5354.
Our Offices
Our solicitors on Brentford High Street, are just a short walk away from Brentford railway station. Our Belgravia solicitors are located Just a 5 minute walk from Victoria tube station in Grosvenor Gardens. Our solicitors located in Ealing London are only a short walk from both Ealing Broadway and South Ealing and our solicitors in Richmond Surrey have the pleasure of overlooking the picturesque Richmond Green. Finally our solicitors in Canterbury Kent are located in the within the UNESCO World Heritage Site of Canterbury Cathedral.
Our partner, Raminder Uberoi, can also provide a Notary Public Service at any of our London offices.
Leasehold law is undergoing major reform. To stay informed about developments and commencement dates for the 2024 Act, see our page: Leasehold Reform Latest Updates
Lease Extension Calculator
How does the Lease Extension Calculator Work
Our lease extension calculator is designed to be simple to use so that you can easily estimate how much your lease extension will cost.
When using the calculator, you’ll only have to input a few simple details about your lease and property to create a reliable and reasonably accurate range of data.
The first thing you need to input is the remaining term of your lease in years. You must be accurate with this information, as this can hugely affect your final results.
You’ll also need to input how much you pay for ground rent. As getting a lease extension clears your ground rent and reduces it to nothing, the amount you’re currently paying influences the final price of your lease extension premium. Usually, the more you pay for your ground rent, the more your lease extension will cost.
In addition, you’ll also need to input the value that you believe your property will be once you extend the lease. As your premium is based in parts on your property’s valuation, this is another critical metric and should be as accurate as it can be to help you get a reliable estimate.
Once you’ve imputed and submitted all this information, our calculator will use the available guidelines and rules from legislation like The Leasehold Reform, Housing and Urban Development Act 1993 to generate a reliable output.
Our lease extension calculator is instant and will give you a guide price within seconds, giving you the confidence and information to start your lease extension process.
Lease Extension Calculator
Disclaimer
This Lease Extension calculator is provided for general information and guidance purposes only. While every effort has been made to ensure the accuracy of the calculations, no guarantee, warranty or representation is made as to their accuracy or completeness. The figures produced do not constitute legal, financial or tax advice and should not be relied upon as such.
Before taking, or refraining from taking, any action based on the results, you should obtain a formal valuation on any premium payable from a Chartered Surveyor regulated by RICS. We can recommend lease extension surveyors and you may email us if required. Neither Starck Uberoi Solicitors nor any associated parties accept any liability for loss or damage arising from reliance on the results.
Lease Extension FAQs
Does a landlord have to extend a lease?
There are usually two ways to extend a lease. The first is a voluntary lease extension, where the leaseholder and freeholder agree terms. A landlord is not generally obliged to agree to this. The second is a statutory lease extension. For a flat, if the leaseholder qualifies under the Leasehold Reform, Housing and Urban Development Act 1993, the landlord can be required to grant a lease extension on the statutory terms. This gives the leaseholder the right to extend their leas by 90 years and reduce their ground rent to a peppercorn, provided that you meet the criteria set out in the Leasehold Reform, Housing and Urban Development Act 1993
Can my landlord refuse to extend a lease?
A landlord does not have to extend your lease on a voluntary basis. However, as long as you meet the criteria for extending under the 1993 act, your landlord cannot refuse to extend your lease.
Is the lease extension process different if I already own a share of the freehold?
As freeholders, you are able to extend your leases out of the freehold to 999 years. If you are looking to extend your lease as a freeholder or co-freeholder, you should discuss extending your leases as a group as, in practice, you usually require each other’s consent and signatures.
For more about share of freehold and lease extensions, visit our blog here:
Share of Freehold Property Lease Extension
Where can I obtain a copy of my lease?
If you need a copy of your lease which has a mortgage on it, you can obtain a copy through your mortgage lender. Your freeholder may also have a copy of the lease that they can provide you with.
Alternatively, the Land Registry will hold a copy of the lease but be aware that fees may be payable.
Do I qualify for a lease extension?
To qualify for a statutory lease extension, the leaseholder will usually need to have owned the flat for at least two years, and the lease must have been originally granted for more than 21 years, subject to certain exceptions.
What is a section 42 notice?
A section 42 is a legal notice detailing the fixed premium arranged with the landlord in exchange for extending the lease.
Can I extend my lease without serving a section 42 notice?
You can take an informal route; however you may experience delays and the landlord can refuse or arrange the lease on their terms.
Can I buy the freehold outright?
If more than 50% of flat owners in your block wish to acquire the freehold, you can follow a procedure known as collective enfranchisement.
Why Choose Starck Uberoi Solicitors?
No Hidden Costs
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Our commitment to excellence is demonstrated by our accreditation to The Law Society’s, Conveyancing Quality Scheme.
SRA Regulated
We are regulated by the Solicitor’s Regulation Authority and are Law Society LEXCEL Accredited.
Convenience
Based in London and Canterbury we can communicate via face to face meetings, email, telephone or video call.
Property Network
We can recommend excellent Chartered Surveyors, financial and tax advisors to ensure a complete professional service.
ALEP
We are proud to be Members of the Association of Leasehold Enfranchisement Practitioners (ALEP). ALEP Members are vetted to ensure that they have the requisite expertise in leasehold enfranchisement. ALEP acts as a badge of assurance and confirms that we can handle potentially complex collective enfranchisement transactions.
