TRW & Co · Real estate
How to Extend a Flat Lease in England and Wales
A lease extension adds years to a flat lease and can remove ground rent. Qualifying leaseholders in England and Wales can use the statutory route, starting with a section 42 notice that secures 90 extra years at a peppercorn rent, or negotiate informally. Here is how each route works, the deadlines that matter and how the premium is valued in 2026.
Key pointThe statutory timetable is unforgiving: if terms are not agreed and no tribunal application is made within six months of the landlord's counter-notice, the claim is treated as withdrawn and a new one is generally barred for 12 months.
At a glance
Statutory term
A statutory flat lease extension adds 90 years to the existing unexpired term and reduces ground rent to a peppercorn under the 1993 Act.
No two-year wait
Since 31 January 2025, leaseholders can claim a statutory extension without first owning the flat for two years.
The 80-year line
Marriage value is nil while more than 80 years remain; below that, the landlord takes half of it, so premiums rise sharply.
Counter-notice deadline
The section 42 notice must give the landlord at least two months to serve a counter-notice admitting or disputing the claim.
Tribunal window
If terms are disputed, either party may apply to the tribunal from two months, and no later than six months, after the counter-notice.
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How to extend a flat lease: the short answer
A lease extension gives a flat owner a longer lease, and usually a lower or zero ground rent, in return for a premium paid to the landlord. In England and Wales there are two routes. The statutory route under the Leasehold Reform, Housing and Urban Development Act 1993 starts with a formal notice, commonly called a section 42 notice, and entitles a qualifying leaseholder to an extra 90 years at a peppercorn rent. The informal route is a negotiated deal on whatever terms the landlord will agree.
The statutory route is slower and more formal, but it gives you a legal right, a set valuation method and a tribunal to settle disputes. The informal route can be quicker and cheaper in fees, but the landlord can set conditions, such as a new ground rent, that the statute would not allow.
As of October 2026, the cheaper valuation rules and 990-year term promised by the Leasehold and Freehold Reform Act 2024 are not yet in force. This guide explains the process that applies today, step by step.
Who qualifies for a statutory lease extension
The right belongs to a "qualifying tenant" of a flat, which in broad terms means the leaseholder under a long lease. Since 31 January 2025, there is no longer any requirement to have owned the flat for two years before claiming. That change was made by the Leasehold and Freehold Reform Act 2024 and is reflected in the amended section 39 of the 1993 Act.
Some leases and landlords fall outside the regime, for example certain leases granted by charitable housing trusts and some business leases. Leases of houses, as opposed to flats, are covered by a different statute, the Leasehold Reform Act 1967, which currently gives a 50-year extension rather than 90. If in doubt, take advice before serving any notice, because a notice served by someone who does not qualify will fail.
Statutory or informal lease extension?
Choosing the route is the first real decision. The table summarises the trade-offs.
| Issue | Statutory route (1993 Act) | Informal route |
|---|---|---|
| Term | 90 years added to the existing unexpired term | Whatever is agreed, often 90 to 999 years |
| Ground rent | Reduced to a peppercorn (effectively nil) | Negotiable; may include a new ground rent or review clause |
| Premium | Calculated under Schedule 13; disputes go to tribunal | Negotiated; no statutory formula binds the landlord |
| Landlord's costs | Leaseholder pays the landlord's reasonable statutory costs | Usually a term of the deal |
| Timetable | Fixed statutory deadlines that both sides must meet | Flexible; no deadlines unless agreed |
| Certainty | Right enforceable against a reluctant landlord | Landlord can withdraw or change terms before completion |
| Valuation date | Fixed at the date the notice is given | Moves until terms are agreed |
For leaseholders with a cooperative landlord and a lease well above 80 years, an informal lease extension can be efficient, provided the new terms are checked carefully. Where the landlord is absent, slow or asking for terms that add new ground rent, the statutory route is usually safer.
How the premium is valued
Under Schedule 13 to the 1993 Act, the statutory premium is made up of the diminution in the landlord's interest (the loss of future ground rent and the deferral of the landlord's reversion) and the landlord's share of marriage value. Marriage value is the increase in total value created by the longer lease. The landlord takes 50 per cent of it, but it is treated as nil where the lease has more than 80 years left on the date the notice is given.
That rule explains why specialist valuers urge leaseholders to start a lease extension before the term drops to 80 years. The premium can rise sharply below that point, and each further year adds cost. Two technical inputs, the deferment rate and the capitalisation rate, also move the figure, and they are often the main point of disagreement between valuers.
Costs to budget for
On the statutory route the leaseholder pays the premium, their own solicitor and valuer, and the landlord's reasonable legal and valuation costs of dealing with the claim. Those landlord's costs are limited to what the statute allows, such as investigating the claim, valuing the flat and granting the new lease. They do not include the landlord's costs of a tribunal hearing, where each side usually bears its own costs unless a party has behaved unreasonably.
Where the building has an intermediate landlord, such as a head lessee, part of the premium may be payable to that party, and its costs may also be claimed. Budget for registration fees and for any lender's fees on the deed of variation or new charge. Agreeing the scope of the landlord's costs early avoids a second dispute after the premium has been settled.
What changes under the 2024 Act
The Leasehold and Freehold Reform Act 2024 will remove marriage value, let the government prescribe the deferment and capitalisation rates, extend the statutory term to 990 years and limit the landlord's costs that leaseholders must pay. According to the House of Commons Library, those provisions are not yet in force and await technical fixes in new legislation. Our guide to the Leasehold and Freehold Reform Act explains the timing in more detail.
The statutory lease extension process, step by step
The 1993 Act sets a tight timetable. Missing a deadline can mean the notice is treated as withdrawn, and a withdrawn notice generally prevents a fresh claim for 12 months, as section 42 provides.
- Gather documents and a valuation. Obtain the lease, official copies of the title, the landlord's details and any intermediate landlords. Instruct a specialist valuer to advise on the premium you should propose.
- Serve the section 42 notice. The notice must contain the particulars set out in section 42: the flat, the lease, the premium proposed, the terms proposed and a response date at least two months ahead. It must be given to the landlord and any third party to the lease.
- Landlord investigates. The landlord may ask for proof of title and may instruct its own valuer, who will usually need access to the flat.
- Landlord serves a counter-notice. By the response date, the landlord must give a counter-notice under section 45. It either admits the right and says which proposals it accepts and counter-proposes the rest, or disputes the right, or signals a redevelopment application.
- Negotiate the terms. The valuers negotiate the premium and the solicitors negotiate the lease terms. Most cases settle at this stage.
- Apply to the tribunal if needed. If terms remain in dispute two months after the counter-notice, either side may apply to the First-tier Tribunal (Property Chamber). The application must be made within six months of the counter-notice.
- Complete the new lease. Once terms are agreed or determined, there is a short window to complete. If it is missed, a court application may be needed to avoid the notice being treated as withdrawn.
- Register the new lease. Register the new lease at HM Land Registry so the longer term appears on the title, and notify your lender.
If the landlord fails to serve a counter-notice at all, the leaseholder may apply to the county court under the 1993 Act for an order on the terms in the notice. That application also has a six-month limit, so diarise it on the day the notice is served.
Diarise every deadline the moment the section 42 notice is served: the counter-notice date, the earliest tribunal application date, the six-month cut-off and the completion window. Most failed claims we see fail on timing, not on valuation.
When the tribunal decides
Disputes about the premium and the lease terms go to the First-tier Tribunal (Property Chamber) in England, and to the Leasehold Valuation Tribunal in Wales. The tribunal has power under section 48 to determine the terms of acquisition that remain in dispute. It hears expert valuation evidence and may inspect the property.
Disputes about whether the leaseholder has the right at all, for example where the landlord's counter-notice denies entitlement, are generally a matter for the county court. Once the terms are fixed, the landlord is bound under section 56 to grant the new lease at a peppercorn rent for a term expiring 90 years after the existing term date.
Tribunal proceedings add time and cost, so many cases settle shortly before the hearing. Where a case raises a point of law, an appeal may lie to the Upper Tribunal (Lands Chamber). Our property litigation team handles contested claims and, where advocacy at a hearing requires it, we instruct specialist counsel.
An illustrative scenario
This scenario is illustrative only and does not describe a real client or matter.
A leaseholder owns a London flat with 84 years left and a ground rent that doubles every 25 years. The landlord offers an informal lease extension for 125 years with the same doubling ground rent. The leaseholder's valuer points out that the statutory route would add 90 years at a peppercorn and that, because more than 80 years remain, no marriage value would be payable.
The leaseholder serves a section 42 notice. The landlord's counter-notice admits the right but proposes a higher premium. The valuers settle the premium after negotiation, without a tribunal application, and the new lease is completed within the statutory window. The leaseholder ends up with a longer lease, no ground rent and a more mortgageable title. Whether the statutory route wins in a given case depends on the numbers and the landlord's offer, so model both.
Risks and common mistakes
Serving a defective section 42 notice
The notice must contain the particulars required by section 42, be given to the right parties, and specify a response date at least two months after it is given. Mistakes such as naming the wrong landlord, omitting a party to the lease or proposing a premium that is not realistic can lead to arguments about validity. A notice that fails can cost months and, if withdrawn, may block a fresh claim for 12 months.
Missing the six-month tribunal deadline
If terms are not agreed, the application to the tribunal must be made within six months of the counter-notice. If neither side applies in time, the notice is treated as withdrawn, the leaseholder may be liable for the landlord's costs, and a new claim usually cannot be made for 12 months. The same discipline applies to a county court application where no counter-notice is served.
Waiting too long below 80 years
Every year below 80 years adds marriage value under the current rules, and short leases can make a flat hard to sell or mortgage. Many leaseholders delay because they expect the 2024 reforms to apply soon. That may be the right call for long leases, but for short leases the cost of waiting can be significant, and the commencement date of the reforms remains uncertain.
Accepting an informal deal with onerous ground rent
Informal offers sometimes include a doubling or escalating ground rent, a short additional term or new restrictive covenants. Such terms can make the flat harder to sell or mortgage. Compare the informal offer with the statutory route on term, rent and total cost, and read the draft lease before agreeing heads of terms.
Forgetting the lender
Most leases are mortgaged. The lender's consent may be needed for the surrender and regrant, and the lender will want the new lease charged in its favour. Bring the lender in early, so completion is not delayed when the statutory completion window is running.
Selling a flat with a short lease, and overseas owners
A seller can serve a section 42 notice and assign the benefit of it to the buyer with the flat. The buyer then completes the lease extension after completion of the purchase, with the valuation date already fixed. This is a common way to keep a sale moving where the lease is short. Since January 2025 a buyer can also serve its own notice immediately after completion.
Leaseholders living abroad, including in Bangladesh, the Gulf and Singapore, can extend in the same way, but must give an address in England and Wales where notices may be served. Our residential property solicitors and international private client team coordinate signatures, identity checks and lender requirements for overseas owners.
Collective enfranchisement as an alternative
Where enough flat owners in a building want to act together, buying the freehold through collective enfranchisement can be an alternative to individual extensions. Once the participating leaseholders own the freehold through a company, they can grant themselves long leases at a peppercorn. The process, qualifying conditions and valuation are different, and it needs organisation among neighbours, but it can give control over management as well as term. A lease extension remains the simpler option for a single owner.
Lease extension checklist
- Confirm you are a qualifying tenant and that the flat is within the 1993 Act.
- Check the unexpired term and how close it is to 80 years.
- Obtain a valuation from a specialist leasehold valuer.
- Compare any informal offer with the statutory route on term, ground rent and total cost.
- Serve a valid section 42 notice and diarise every deadline.
- Negotiate, and apply to the tribunal in time if terms are not agreed.
- Complete the new lease, register it and update your lender.
For a statutory claim, a freehold purchase or a collective enfranchisement, speak to our leasehold enfranchisement solicitors. If your building has fire safety defects, our Building Safety Act guide may also be relevant. To start a lease extension, contact our London office.
Frequently asked questions
01How long does a lease extension take?
An informal extension can complete in a few weeks if the landlord cooperates. A statutory claim takes longer: the landlord has at least two months to serve a counter-notice, negotiations follow, and if terms cannot be agreed a tribunal application adds several months more. Many statutory claims settle within the six-month window after the counter-notice. Absent landlords or disputed entitlement can extend the timetable, so start well before any planned sale or remortgage.
02How much does it cost to extend a lease?
The cost has two parts: the premium paid to the landlord and the professional costs. The premium depends on the unexpired term, ground rent, the flat's value and the deferment and capitalisation rates, and includes marriage value if 80 years or fewer remain. Under the statutory route the leaseholder also pays the landlord's reasonable legal and valuation costs, as well as their own. A specialist valuer's report is the only reliable way to estimate the premium for a particular flat.
03What is a section 42 notice?
It is the formal notice a qualifying leaseholder serves on the landlord to claim a new lease under section 42 of the Leasehold Reform, Housing and Urban Development Act 1993. It identifies the flat and the lease, proposes a premium and lease terms, names the leaseholder's representative and specifies a date, at least two months ahead, by which the landlord must respond with a counter-notice. Serving it fixes the valuation date and starts the statutory timetable.
04What happens if my landlord does not respond?
If the landlord fails to serve a counter-notice by the date in your section 42 notice, you may apply to the county court for an order setting the terms of the new lease in line with your notice. The application must be made within six months of the date the counter-notice was due. If the landlord cannot be found at all, a separate procedure allows the court to deal with missing landlord cases. Act promptly, because the time limits are strict.
05Should I wait for the new rules before extending?
The Leasehold and Freehold Reform Act 2024 will remove marriage value and introduce 990-year extensions, but those provisions are not yet in force as of October 2026 and need further legislation. If your lease has well over 80 years left and you have no plans to sell, waiting carries limited risk. If your lease is near or below 80 years, or you need to sell or remortgage, waiting may cost more than it saves. Take a valuation and model both scenarios.
06Can I extend the lease on a house?
Yes, but a different statute applies. Leaseholders of houses use the Leasehold Reform Act 1967, which currently allows a 50-year extension, or a claim to buy the freehold, which is often the better option for a house. The 2024 Act will, when commenced, give houses a 990-year extension option too. The procedure and valuation rules differ from the flat regime, so take advice on which right suits your circumstances.
Sources and official materials
- Leasehold Reform, Housing and Urban Development Act 1993, section 42 — Contents and service of the tenant's notice
- Leasehold Reform, Housing and Urban Development Act 1993, section 45 — Landlord's counter-notice
- Leasehold Reform, Housing and Urban Development Act 1993, section 48 — Tribunal applications and the six-month limit
- Leasehold Reform, Housing and Urban Development Act 1993, Schedule 13 — Premium calculation and marriage value
- GOV.UK: Leasehold property – extending the lease — Government overview of extension rights
- First-tier Tribunal (Property Chamber) — Tribunal that determines disputed terms
- House of Commons Library: Leasehold reform in England and Wales — Status of the 2024 Act reforms
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.