Extending the lease on a property is a crucial step for leaseholders, especially when the remaining term falls below 80 years. It helps maintain or even increase the value of the property and avoids costly fees in the future. Many leaseholders wonder: how long does it take to extend a lease? In this guide, we explore the typical timeline, factors that affect the process, and what you can do to make it as smooth as possible.
How long does a lease extension take on average?
On average, a statutory lease extension can take up to six to twelve months to complete. The time frame depends on several factors, including how quickly both parties respond, whether negotiations go smoothly, and whether disputes arise.
Alternatively, informal lease extensions may take as little as three to four months, though these are often less predictable and carry additional risks. The complexity of the lease, the involvement of lenders, and any legal disputes can significantly impact the timeline.
How to extend a leasehold property: Step-by-step guide
Extending a leasehold property can feel complicated, but breaking it down into clear steps makes it more manageable. Here's a run-through of how the process works, or you can head to our full guide on the leasehold extension process.
1. Check your eligibility
Before starting the process, confirm that you meet the requirements for a statutory lease extension:
You must have owned the leasehold property for at least two years.
The original lease must have been granted for more than 21 years.
2. Get a lease valuation from a surveyor
Hire a chartered surveyor who specialises in leasehold valuation. They will assess the premium you should expect to pay the freeholder. Valuations consider several factors, including:
The current market value of your property
The remaining years on the lease
The ground rent charges
For leases with fewer than 80 years remaining, marriage value (the increase in property value after the lease extension) adds to the cost.
3. Hire a solicitor with lease extension experience
A lease extension solicitor ensures that the process follows legal requirements and helps protect your interests. They will:
Serve the formal notice on the freeholder (if using the statutory route)
Handle all negotiations
Review and finalise the new lease terms
4. Serve the Section 42 Notice
This formal Section 42 Notice informs the freeholder of your intent to extend the lease under the Leasehold Reform, Housing and Urban Development Act 1993. It must include:
The premium you’re offering to pay
The terms of the extension
Your solicitor’s details
Once served, the freeholder has two months to respond. Be precise and accurate with all details - any mistakes can invalidate the notice.
5. Wait for the freeholder’s Counter-Notice
The freeholder will either accept your proposed terms or suggest a different premium and conditions. Most freeholders respond within the legal timeframe, but if they don’t, your solicitor can take further action.
6. Negotiate the premium and terms
If there’s a disagreement, negotiations follow. Your surveyor will help ensure you’re paying a fair price, while your solicitor handles the legal side. If you can’t reach an agreement, you can apply to the First-tier Tribunal (Property Chamber) for a decision.
7. Complete the lease extension
Once terms are agreed, your solicitor will draft the new lease and register it with the Land Registry. Congratulations - your lease is now extended!
What can delay a lease extension?
Many factors can slow down the lease extension process. Here’s a closer look at the most common causes of delays:
1. Late responses from the freeholder
Freeholders must respond to a Section 42 Notice within two months. However, some freeholders delay or miss this deadline, requiring your solicitor to take further action. Freeholders may also drag out negotiations if they believe you’re under pressure to complete quickly.
2. Disputes over the premium
Negotiating a fair premium is often one of the most time-consuming parts of extending a lease. The freeholder may demand a higher price, especially when the marriage value is involved. If both parties cannot agree, the matter may need to be resolved by the First-tier Tribunal, which can add several more months to the process.
3. Missing or incorrect paperwork
If your Section 42 Notice or any other documentation contains errors, the freeholder could challenge its validity, leading to delays. Carefully checking details and working with an experienced solicitor helps avoid this issue.
4. Complex lease terms
Some properties have complex lease structures or terms that require additional legal work, slowing down the process. This is especially true for shared ownership properties or properties with restrictive covenants.
5. Freeholder disputes
In some cases, freeholders may contest your eligibility for a lease extension or other legal points. Resolving these disputes through the tribunal system takes time. Being prepared, choosing experienced professionals, and communicating promptly can help minimise delays.
What is an informal lease extension?
An informal lease extension is a private agreement between the leaseholder and the freeholder that doesn’t follow the statutory process outlined in the Leasehold Reform Act. This method offers more flexibility but comes with potential risks.
Unlike the statutory process, where leaseholders have clear rights and protections, an informal agreement allows the freeholder to set terms that may not be favourable. For example, the freeholder might:
Propose a lower premium but include a rising ground rent clause.
Offer a shorter lease extension than the 90 years guaranteed under the statutory route.
Include other onerous terms that could affect the property’s future value or saleability.
Is it quicker?
Yes, informal extensions can be faster, sometimes completed in as little as three to four months. However, the speed comes with trade-offs. Leaseholders should always seek professional advice to review the terms before accepting an informal offer. The lack of legal protections means there’s more potential for unfavourable outcomes.
💡Editor's insight: "In my experience, informal extensions may be more suitable if you have a strong relationship with your freeholder and are confident in the proposed terms. Otherwise, the statutory process, while slower, provides greater security and long-term benefits."
Do you need a solicitor for a lease extension?
Yes, hiring a property solicitor for a lease extension is highly recommended. A qualified solicitor ensures that the process complies with legal requirements and protects your interests. They handle drafting and reviewing documents, serving notices, and negotiating terms.
In addition, a chartered surveyor will assess the premium to provide a basis for negotiation. This combination of legal and valuation expertise is key to achieving a successful outcome.
FAQs
Is a lease extension difficult?
The process can be complex, particularly if there are disagreements with the freeholder or if deadlines are missed. However, with the right legal and valuation support, most lease extensions are manageable. Using the formal route provides clear steps and legal protections, reducing risks.
How much does it typically cost to extend a lease?
The cost of a lease extension varies widely depending on:
The property’s value
The remaining term of the lease
Ground rent charges
Final thoughts
Extending a lease is an important step that safeguards the value of your property and avoids costly future issues. While the process can take several months, understanding the steps involved and working with experienced professionals makes it much smoother. Whether you choose the statutory route or an informal agreement, careful planning is key to success.