Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
If you own a flat on a lease that is getting shorter each year, you may have a statutory right to extend it. This right comes from the Leasehold Reform, Housing and Urban Development Act 1993, and for many flat owners it is the single most important protection they have against a dwindling lease and a falling property value.
The rules determine who can claim, how the price is worked out, and what the new lease looks like once granted. This guide walks through the key points in plain English: the qualifying conditions, the additional years you gain, the ground rent position after extension, and the premium you will need to pay the freeholder. It is written for leaseholders who want a practical understanding before taking the next step.
What this document is
A statutory lease extension is a formal right granted to qualifying flat leaseholders to add further years to their existing lease, on terms set out in statute rather than negotiated from scratch. In practical terms, a qualifying tenant can require the freeholder to grant a new lease that runs for an extra 90 years on top of whatever is left on the current term, with the ground rent reduced to a peppercorn (effectively zero) for the whole new term.
The other terms of the lease usually stay close to the existing ones, with a few statutory modifications, including wider redevelopment rights for the landlord near the end of the term. Because the right is statutory, the freeholder cannot simply refuse, provided the leaseholder meets the qualifying conditions and follows the correct procedure.
In exchange, the leaseholder pays a premium calculated using a method set out in the Act, which takes into account the loss of ground rent, the reduction in the value of the freeholder's reversion, and, where the remaining term is short, a share of the uplift in value known as marriage value. Recent reforms have aimed to simplify aspects of this calculation, so it is worth checking the current position before making a claim.
How to use this document
Check you qualify as a tenant. You need to have been the registered leaseholder of the flat for at least two years before serving the claim, and your lease must have been originally granted for a term of more than 21 years. Business leases do not qualify. If the flat is held through a trust or company, additional points may apply.
Get a valuation of the premium. Before committing, instruct a surveyor with leasehold extension experience to prepare a valuation. They will estimate the premium payable to the freeholder by assessing the ground rent capitalisation, the reversion value, and whether any marriage value is in play because the lease has fewer than 80 years left to run.
Serve a Section 42 notice on the freeholder. The formal claim is started by serving a notice under section 42 of the 1993 Act on the competent landlord. The notice must include prescribed information, propose a premium, and give the freeholder a deadline (at least two months) to respond. Getting the notice wrong can invalidate the claim.
Negotiate terms with the freeholder. The freeholder replies with a counter-notice, either accepting the claim and proposing their own premium figure, or disputing your right to extend. Solicitors and surveyors on both sides then negotiate to agree the premium and any lease drafting points. Most claims settle at this stage without needing a tribunal.
Complete the new lease. Once terms are agreed, the new lease is drafted, signed, and registered at the Land Registry. You pay the agreed premium along with the freeholder's reasonable valuation and legal costs, plus your own professional fees and registration costs. The extended lease then replaces the old one on the title.
Q How many extra years do I get with a statutory lease extension?
A qualifying flat leaseholder is entitled to a new lease that adds 90 years on top of the unexpired term of the existing lease. So if you have 75 years left and extend, your new lease will run for 165 years. The ground rent is also reduced to a peppercorn, meaning no meaningful rent is payable to the freeholder for the whole of the new term.
Q Why does the 80-year mark matter so much?
Once a lease drops below 80 years of unexpired term, the premium calculation includes marriage value, which is a share of the extra value unlocked by extending. This can increase the cost of extending significantly. Many leaseholders try to start the process well before the 80-year threshold to keep the premium lower. Recent reform efforts have proposed changes in this area, so current rules should be checked.
Q Can my freeholder refuse to extend the lease?
If you meet the qualifying conditions and serve a valid Section 42 notice, the freeholder cannot simply refuse. They can challenge your eligibility, dispute the premium, or in limited cases seek to redevelop the building instead of granting the extension. In practice, most freeholders engage with the process and the main point of negotiation is the premium payable.
Q What costs am I responsible for beyond the premium?
In addition to the premium itself, you are typically responsible for the freeholder's reasonable legal and valuation costs in connection with your claim, as well as your own solicitor and surveyor fees. There are also Land Registry fees for registering the new lease. Budget for these on top of the premium, as they can add a meaningful sum to the overall cost.
Q Can I sell my flat while a lease extension claim is in progress?
Yes. The benefit of a Section 42 notice can be assigned to a buyer at the same time as the flat is sold, so the buyer steps into your shoes and completes the extension. This is often used where a buyer would not otherwise meet the two-year ownership rule. The assignment needs to be handled carefully in the sale contract.
Q What happens if we cannot agree the premium?
If negotiations stall, either party can apply to the First-tier Tribunal (Property Chamber) to determine the premium and any disputed lease terms. The tribunal will hear evidence, usually from surveyors, and decide the figure. Most claims settle before a hearing because both sides want to avoid tribunal costs and delay, but the option is there if needed.
Q Does the statutory route apply to houses as well as flats?
No. The 1993 Act route for a 90-year extension at peppercorn rent applies to qualifying flat leaseholders. Leaseholders of houses have different statutory rights under earlier legislation, which typically allow enfranchisement (buying the freehold) rather than a long lease extension on the same terms. The procedure and valuation for houses follow a separate framework.
Lease extension claims involve tight procedural rules, a premium calculation that moves with time, and a freeholder on the other side of the table. An experienced legal adviser can talk you through how the statutory route works and what to think about next, based on what you describe on the call.
✓Plain-English answers to your specific questions about lease extension
✓A clear explanation of how the Section 42 process works for your situation
✓Practical perspective on timing, qualifying conditions, and the 80-year point
✓Help thinking through your next steps based on what you describe
Personal call · For information only · Independent advisers
Written & reviewed by
Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.
