Lease extensions

Extending a lease is a statutory right for 100% leaseholders. In most cases, Leaseholders will get an extra 90 years added to the existing remaining term. These are the two options available if you would like to extend the lease on your leasehold property:   

Option 1: Voluntary lease extension scheme  

Option 2: Lease extension under the statutory scheme 

You may have the right to extend your lease under option 2, the statutory scheme, and if you wish to pursue this, we advise you to seek independent legal advice to confirm whether you do have this right and to obtain advice about the difference in following this procedure compared to option 1, the voluntary lease extension scheme.

For Shared Owners there is no statutory right to a lease extension. But we will consider granting lease extensions on shared ownership leases on a voluntary basis. In most cases, a new lease will be granted for a maximum 125-year term.

The amount you pay for a lease extension will depend on what the valuation of your home states, this will be “the premium”.

The premium a shared owner pays for extending the lease follows a set formula and will depend on factors including; 

• The length of time remaining on your lease 
• The value of your property 
• The terms of your existing lease 

Visit www.lease-advice.org for more information.

There isn't one fixed cost for extending a lease. It is worth noting that Midland Heart are unable to determine the exact cost of the lease extension until a formal valuation has been carried out.  

If you own 100% of your home, you can get an estimate using the Leasehold Advisory Service website - Lease extension calculator, but this is designed to only offer you an indicative value range. 

If your home is still a shared ownership property, this will be taken into consideration and you will only pay for the lease extension on the shares of the property that you own. 

As well as paying the premium, you will also have to pay:

• Your solicitor
• The valuation (to calculate the premium)
• The legal costs of our solicitors
• Our administration fee

The time required to extend a lease varies. 

It can depend on: 

• The type of lease you have 
• The route you're using. For example, if done under statute as opposed to the voluntary/informal route there are strict timeframes to be followed 
• Whether the terms can be agreed without dispute 
• Whether the application is affected by changes to legislation

You may find it useful to know that a Lease Extension Valuation remains valid for 6 months.

If you've already applied and want an update, contact us with your case or application reference.

There's no obligation on you to extend your lease. A lease is granted for a fixed period. As the remaining term becomes shorter, it's important to understand your options.

You should be aware that if you start the lease extension process and decide not to go ahead, the admin fee and the valuation fee will still be payable and are non-refundable.  

If your lease has less than 80 years remaining, we recommend you take advice to understand your options.

Under the previous statutory lease-extension valuation rules, the 80-year point was particularly significant because of marriage value.

The Leasehold and Freehold Reform Act 2024 provides for marriage value to be removed from the calculation for qualifying statutory lease extensions, but the relevant reforms are being introduced in stages and are not all currently in force. 

When you purchased your home, you’ll have a “lease term” for a defined number of years. Normally this would be from 99 years or 125 years up to 999 years. A lease extension is a mechanism by which you can extend your original term.

The term you can extend your lease by will depend on how the lease extension is done (i.e. voluntary or under statute) and whether or not we are the Freeholder. 

If you're planning to sell your leasehold property, the remaining length of your lease may be important to potential buyers and their mortgage lenders.

A shorter lease can affect the value and marketability of a property and may make it more difficult to obtain a mortgage, depending on the circumstances and the lender's requirements.

You should also speak to your solicitor or other independent professional adviser about how a lease extension could affect your sale.

If you're a shared owner and are considering selling your share, click here for some useful information.

The length of your lease may also be relevant if you're applying for a mortgage or remortgage. Mortgage lenders have their own requirements regarding lease length, so you should check directly with your lender or mortgage adviser.

If you're considering a lease extension because you want to remortgage, allow enough time for the process. 

This will depend on how the lease extension is done (i.e. voluntary or under statute). If you intend to use your own valuer please contact us beforehand.  

Depending on the process you're using, formal procedures may apply if an agreement cannot be reached. You should consider independent legal advice if you do not agree the terms. 

If you have rent, service-charge or other arrears, please do contact us and we'll explain what this means for your application. Your circumstances may affect the lease-extension process.

We'll keep you informed as your application progresses. 

If you've already applied and want an update, contact our leasehold team and quote your application or case reference.

A lease extension can have important legal and financial implications. For this reason, we recommend you seek independent legal advice before and during the process. 

We can explain our processes and the options available through us, but we cannot provide independent legal or financial advice. The information on this page is general guidance and does not constitute legal or financial advice. 

Your solicitor will be able to let you know whether it’s better for you to go down the informal route or whether you have a legal right to go down the statutory route. They’ll also prepare legal documents, liaise with our solicitors and respond to our requests for information.

Your solicitor will be your main point of contact for questions about your application and will be able to keep you updated through the process.

If you've already submitted an application, and you do need to talk to us, please have the following information available;  

• Your full name 
• The full address of your property
• A copy of your lease (if available)