If you own a leasehold property in England or Wales, extending your lease isn’t a mere legal formality; it’s an investment. As soon as your lease term falls below 80 years, the value of your property starts to decrease, and extension costs start increasing because of the introduction of marriage value. At Kaiser Solicitors, we assist leaseholders at every stage of the lease extension process, from valuation to negotiation, drafting to final registration, with clarity, integrity, and speed.
Why Short Leases Are a Problem:
When your lease drops below 80 years left, two things occur:
Marriage Value becomes effective: You’ll have to pay the freeholder for the anticipated hike in property value following the extension of the lease.
Property Value Reduces: Short leases drastically decrease market value and resale worth.
Mortgage Restrictions: Most lenders will not fund houses with leases shorter than 70–80 years.
Kaiser Solicitors Tip: Start the process of extending a lease prior to the 80-year point to save money and enhance property security.
Formal vs Informal Lease Extensions:
Two main options:
Formal (Statutory) Lease Extension:
Rights under the 1993 Act.
Extends lease by 90 years.
Ground rent is now zero.
Valuation and legal fees apply.
Gives greater legal protection.
Informal Extension of Lease:
Direct negotiation with the freeholder.
Flexible duration and conditions.
Ground rent can continue or increase.
Less legal protection.
More likely to contain disadvantageous clauses.
At Kaiser Solicitors, we recommend clients use the formal approach wherever possible—but we are also experienced in handling informal negotiations when situations call for them.
How Much Does It Cost to Extend a Lease?
There’s no single figure. The cost of lease extension in the UK varies depending on various components:
Key Cost Components:
Component Description
Lease Extension Premium Freeholder payment for extended lease
Valuation Fees Expertise-based premium estimate
Legal Fees (yours + theirs) Preparation, advice, negotiation
Land Registry Fees Registration update
Stamp Duty Land Tax (SDLT) If premium is over £125,000
Lease Extension Premium:
This is the largest component. It’s determined on the basis of:
Market value of property.
Number of remaining lease years.
Ground rent.
Number of years to be added.
Marriage value (if below 80 years).
Example Estimate (Flat in London – 78 years remaining):
Item Estimated Range
Lease Premium £12,000 – £20,000
Valuation Fee £500 – £1,200
Legal Fees (Leaseholder) £800 – £1,500
Legal Fees (Freeholder) £1,000 – £1,500
Land Registry Fee £65 – £150
SDLT (if needed) Varies on premium
Conclusion:
Lease extension is not merely tacking on extra years; it’s safeguarding your property’s market value, unlocking financial choices, and gaining peace of mind. With the legal help of Kaiser Solicitors, professional valuation support, and a smoother extension process, you can go through a smooth extension. Contact Us Today and extend your lease with clarity and care.
