Lease Extension: The Essential Guide to Do’s and Don’ts for UK Property Owners

Any property with a short lease can be undesirable for a future buyer or any mortgage company/ refinancing lender.  It can prove difficult to sell, can be time consuming to fix and ultimately will devalue your property.

The lower the lease, the lower the value of your home.

Extending your lease is one of the most important steps you can take to protect your property’s value and avoid unnecessary costs. Yet, many leaseholders delay or make costly mistakes during the process. Kevin Danez, Experienced Property Lawyer at TMT Legal Services guides you through the key do’s and don’ts to help you navigate your lease extension with confidence.

✅ Do’s

Understand Your Legal Position

If you’ve owned your property for at least two years, the Leasehold Reform Act 1993 gives you the right to extend your lease by 90 years with zero ground rent. For houses, the statutory route allows a 50-year extension. Knowing your rights ensures you start from a position of strength.

Act Early

Timing is critical. Begin the process when your lease has 85–100 years remaining. Once it drops below 80 years, ‘marriage value’ applies, significantly increasing the premium payable. Marriage value is the increase in a property’s market value that occurs when the leaseholder extends their lease. It reflects the combined benefit of merging the leaseholder’s and freeholder’s interests, creating a higher overall value than each interest on its own.

Engage Qualified Professionals

Lease extension is a technical process. Use a RICS-qualified surveyor for accurate valuation and a lawyer experienced in leasehold property to manage notices and deadlines. This expertise can save you significantly and prevent legal pitfall and delay An experienced legal professional will follow the correct procedure of serving a Section 42 Notice accurately and on time and ensure your new lease is registered with HM Land Registry, securing your higher term. An informal extension may offer flexibility, but review terms carefully. Some freeholders include clauses that could cost you more in the long run!

Plan Your Budget

Beyond the premium, factor in legal fees, surveyor costs, the freeholder’s expenses, and potential tribunal charges. Be prepared for an initial deposit shortly after serving the Section 42 Notice.

❌ Don’ts

Don’t Delay

Waiting until your lease falls below 80 years will make the process far more expensive.

Don’t Cut Corners

Avoid DIY approaches or using generalist professionals. Incorrect notices or missed deadlines can derail your extension.

Don’t Accept Informal Offers Without Scrutiny

Freeholders may propose terms that seem attractive but include ongoing ground rent or shorter extensions.

Don’t Overlook Hidden Costs

Tribunal fees, registration charges, and the freeholder’s legal costs often surprise leaseholders.

Don’t Miss Deadlines

Key timelines include paying the deposit within 14 days and completing the process within four months after agreement.

Don’t Assume Your lease extension has been Registered

Once complete, register your new lease with HM Land Registry to secure your title, TMT Legal Services will complete this for you when you instruct us to handle your Lease Extension.

✅ Do’s	❌ Don’ts
Start early (85–100 years left)	Wait until under 80 years
Use specialist surveyor & law firm	Use generalist professionals
Budget for all fees	Ignore hidden costs
Follow statutory process	Rely on informal offers without checks
Register with Land Registry	Assume registration happens automatically

Extending your lease is a legal and financial process that demands careful planning. By following these do’s and avoiding the don’ts, you’ll protect your investment and avoid costly mistakes.

If you are considering selling your property in the near future and you have the necessary means to fund the lease extension, we advise to do it earlier to avoid any issues with property chains and unnecessary time pressures.. Contact us as early as possible for expert guidance on valuations, notices, and negotiations. Our teams in Hythe, Chandlers Ford, Horsham, and Bitterne Village in Southampton are ready to provide the expert legal guidance you need to make your lease extension successful and stress-free.