Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

The MoneySaving Forum: join to chat & swap tips with other MoneySavers. Learn how in the Forum Introduction Guide

Extend your lease

Step-by-step guide & calculator

house of cards

If you own a flat, letting your lease drop too low wipes its value quicker than dodgy stone-cladding. Yet in England and Wales, powerful laws let you extend leases for a fair price.

This guide looks at whether you should extend, how it works and has a free Lease Extension Calculator to give an instant steer on how much it'll cost you.

This guide's been written in association with Consumer Futures and with kind help from The Leasehold Advisory Service, Crosse + Crosse Solicitors and Clarke Mairs LLP.

Should I extend my lease?

There are around two million leasehold flats in England and Wales and it's the most common form of flat ownership.

If you own a leasehold flat, you effectively rent it for a certain amount of time. You own the right to hang out there, but not the building itself. Scottish and Northern Irish leasehold laws differ.

Read more on the four main types of home ownership in England and Wales.

Who can extend?

Under the 1993 Leasehold Reform Act, most flat-owners are legally entitled to get 90 years added to their lease at a fair market price. In a nutshell …

Should you extend?

Extending a shorter lease to a decent length can add thousands to your property's marketing value. Generally, the shorter the lease, the lower the asking price.

If your lease is ticking down to 80 years, READ ON!

We want to sear a point onto your brain. There is a magic number of years at which leases become much pricier to extend. That magic number is:

80

Want to ditch your freeholder too?

Leaseholders must pay ground rent (usually small) and service charges (often a fair whack) to the landlord.

Frankly, some freeholders would take the pennies off a dead man's eyes, charging £10,000s extra for repairs and picking pricey insurance policies paying the most commission.

How much will it cost to extend my lease?

The price depends on several variables, including the flat's value, the lease length and ground rent. It also depends on your negotiations.

This tool gives a steer, but bear in mind leasehold law is hideously complicated so costs can vary dramatically. The tool cannot calculate leases with less than 60 years to run, as there are too many variables, so ask a solicitor.

Step-by-step guide to extending your lease

The lease extension process can go slower than a year in prison, so if you're thinking of selling your home, start early. Though it's worth noting that the clock stops counting once you serve the notice, so if you file at 81 years, the lease won't tick down to 80.

This guide will continue to develop over time. Please feedback on how you find this info and your successes and failures.