Skip to main content

Want to take over the management of your building?

Our E-Learning platform has modules for leaseholders looking to manage their own building using a RTM company.

Find out more here

I want to extend my lease. Should I negotiate an extension with my freeholder?

You could negotiate a lease extension, but you need to be aware of the risks. We recommend you get professional help from a solicitor and surveyor with experience in this area.  

Leaseholders who own flats can either extend their leases under the law if they meet certain criteria (formal route), or by working out a deal with the freeholder (informal route). 

The formal route will get you another 90 years added to your lease, and you will not have to pay ground rent, but the process takes time and there will be professional fees. 

The informal route can be quicker, but it’s important to be careful. For example: 

You could agree with the freeholder to reduce the ground rent, but the ground rent cannot be increased. Also, no ground rent should be payable in the additional years.

For example, if your current lease has £500 a year ground rent, and 70 years left, you could negotiate a lease extension of another 40 years and a reduced ground rent of £50 per year. If that was done then you (or whoever owns the flat) would pay £50 a year for the next 70 years, then no ground rent at all for the next 40 years. It might seem strange to think about what happens in 70 years, but it will affect the future value of the flat.

More information you might find useful: 

Still not found the answer? 

Contact LEASE to have your enquiry dealt with by one of our advisers 

LEASE is governed by a board, appointed as individuals by the Secretary of State for the Department for Levelling Up, Housing & Communities.