If you own a leasehold flat, you may already be aware that the length of your lease has a direct effect on your property’s value and how easy it is to sell or remortgage. As a lease runs down, particularly once it falls below 80 years, the costs of extending it increase significantly.
Whether you’re approaching that threshold, preparing to sell, or simply planning ahead, our lease extension solicitors at Heringtons can guide you through every stage of the process with clear, practical advice.
We handle both statutory and informal lease extensions for flat owners across East Sussex. With five local offices, a Conveyancing Quality Scheme (CQS) accredited team, and years of experience working with leaseholders, we know what it takes to extend your lease efficiently and at the right cost.
Get expert lease extension advice today
For advice from specialist lease extension solicitors in East Sussex, contact your nearest Heringtons office in Battle, Bexhill-on-Sea, Eastbourne, Hastings or Rye.
Or complete our online enquiry form and a member of our team will be in touch shortly.
What is a lease extension?
When you buy a leasehold flat, you purchase the right to occupy the property for a fixed number of years. The lease has a start date, and over time the remaining term counts down. A lease extension adds years back onto that term, protecting the value of your home and making it straightforward to sell or remortgage in the future.
In England and Wales, most qualifying leaseholders have a legal right to extend their lease by 90 years, on top of whatever time is currently left, and to reduce their ground rent to zero. This is known as a statutory lease extension. Alternatively, it’s possible to negotiate an extension directly with the freeholder on agreed terms.
Why you should extend your lease
The longer you leave it, the more expensive extending your lease becomes. Once your lease drops below 80 years, a concept called “marriage value” applies. This means the freeholder is entitled to a share of the increased value that a longer lease adds to your property, which can push the premium you pay up considerably.
A shorter lease also makes your flat harder to sell. Many mortgage lenders won’t lend on properties with a lease of less than 70 to 85 years, which narrows your pool of potential buyers significantly. Extending your lease:
- Protects and often increases your property’s market value
- Makes your flat easier to sell and remortgage
- Reduces your ground rent to zero on the statutory route
- Gives you long-term security and peace of mind
If you’re thinking about selling your flat or remortgaging in the next few years, it’s worth speaking to us sooner rather than later. Our residential property solicitors can advise on how your lease length fits into your wider property plans.
Statutory vs informal lease extensions
Statutory lease extension
Under the Leasehold Reform, Housing and Urban Development Act 1993, most leaseholders who have owned their flat for at least two years have a legal right to extend their lease. A statutory lease extension adds 90 years to your current term and reduces your ground rent to a peppercorn (effectively zero). The freeholder cannot refuse.
This route involves serving a formal Section 42 notice on the freeholder, which sets out the terms you’re proposing. The freeholder then has two months to respond with a counter-notice. From that point, both parties negotiate the premium and other terms, usually with the support of surveyors and solicitors.
Informal lease extension
If you haven’t owned your flat for two years yet, or if you and your freeholder have an existing relationship and want to keep things simple, an informal lease extension may be an option. This means approaching the freeholder directly to negotiate terms without invoking your statutory rights.
The advantage is flexibility: you can agree whatever terms both parties accept, including varying the ground rent. The drawback is that you have no legal protection if the freeholder refuses or offers unfavourable terms. We’ll help you assess which route best suits your situation.
The lease extension process
While every case is slightly different, a statutory lease extension broadly follows these steps:
- Check your eligibility. You must be the registered owner of a leasehold flat and have held the lease for at least two years.
- Instruct a surveyor. A specialist leasehold valuer will assess the premium a court would be likely to award, giving you a realistic starting point for negotiations.
- Instruct your solicitor. We’ll review your existing lease, advise on the terms to propose, and prepare the Section 42 notice.
- Serve the Section 42 notice. This is the formal trigger for the statutory process. Timing and accuracy matter here, so it’s important to have a solicitor handle this step.
- Freeholder responds. The freeholder has two months to serve a counter-notice accepting or disputing your proposed terms.
- Negotiate the premium. Both parties negotiate the lease extension premium, supported by their respective valuers. Most cases settle at this stage without going to a tribunal.
- Exchange and completion. Once terms are agreed, we’ll handle the legal documentation and register the new lease at HM Land Registry.
We’ll keep you informed at every stage, let you know what to expect next, and flag anything that needs your attention promptly.
How much does a lease extension cost?
The total cost of a lease extension is made up of several elements:
- The premium. This is the amount you pay the freeholder for the extended lease. It varies depending on your current lease length, the property’s value, and the ground rent. A specialist surveyor will advise on a fair figure.
- Surveyor’s fees. You’ll need your own valuer to assess the premium. You’re also legally required to contribute toward the freeholder’s reasonable valuation costs under the statutory process.
- Your legal fees. We’ll provide a clear estimate of our costs at the outset so there are no surprises.
- The freeholder’s legal costs. Under the statutory route, you’re also required to meet the freeholder’s reasonable legal fees.
- Land Registry fees. Payable on registration of the new lease.
We’re transparent about costs from the start. When you get in touch, we’ll give you a clear breakdown of what to expect before any work begins.
Why choose Heringtons for your lease extension?
Heringtons is one of East Sussex’s most established law firms, with five offices across the county and a team that’s been helping local homeowners with property matters for many years. Our residential property team holds CQS accreditation, the Law Society’s recognised quality standard for conveyancing practices.
Lease extensions involve a specific set of legal rules, strict deadlines, and often detailed negotiations. Getting the process wrong can be costly, particularly if a Section 42 notice is served incorrectly or if you miss a deadline. Our leasehold solicitors know this area of law thoroughly and will handle every step carefully on your behalf.
We also understand that a lease extension rarely stands alone. You might be planning to sell your flat, remortgage, or transfer ownership. Our team can advise on all of these connected matters, including transfers of equity, so you have a joined-up view of your options.
Frequently asked questions about lease extensions
How long does a lease extension take?
A statutory lease extension typically takes between three and 12 months from the point of serving the Section 42 notice. Most cases settle through negotiation rather than going to a tribunal, which keeps the process moving. Informal extensions can be quicker if both parties reach agreement swiftly.
Do I need a solicitor for a lease extension?
You’re not legally required to instruct a solicitor, but it’s strongly advisable. The statutory process involves strict deadlines and formal legal notices. Errors in the Section 42 notice, for example, can invalidate the process and mean you have to start again, incurring additional costs. A solicitor also protects your interests throughout negotiations.
How much do solicitors charge for a lease extension?
Solicitor fees vary depending on the complexity of your case and the route you take. We provide a clear estimate before any work begins so you know what to expect. You should also budget for surveyor costs, the premium itself, Land Registry fees, and a contribution toward the freeholder’s reasonable costs.
What is the 80-year rule for lease extensions?
Once your lease falls below 80 years, the cost of extending it increases significantly. This is because “marriage value” kicks in, which is the additional value created by the extension, and the freeholder becomes entitled to 50% of that value as part of the premium. If your lease is approaching 80 years, it’s worth acting promptly.
Can I extend my lease if I have owned my flat for less than two years?
Not via the statutory route. You must have been the registered owner for at least two years before you can serve a Section 42 notice. However, an informal extension may still be possible if the freeholder is willing to negotiate. Speak to us and we’ll advise on your options.
What is a Section 42 notice?
A Section 42 notice is the formal document that triggers a statutory lease extension. It’s served on the freeholder and sets out your proposed terms, including the premium you’re offering. The freeholder must respond within two months. The notice must comply with specific legal requirements, which is why it’s important to have a solicitor prepare and serve it.
Will my ground rent change after a lease extension?
Under a statutory lease extension, your ground rent will reduce to a peppercorn, which means effectively zero. You won’t pay ground rent on the extended portion of the lease. In an informal extension, the ground rent terms are negotiable and will depend on what you and the freeholder agree.
Can the freeholder refuse to extend my lease?
If you qualify for a statutory lease extension and follow the correct process, the freeholder cannot refuse to grant one. They can, however, dispute the premium you’ve proposed, which is why having a specialist surveyor and solicitor on your side is important. In an informal extension, the freeholder has no legal obligation to agree.
Contact our lease extension team
For straightforward, expert advice on extending your lease, get in touch with our team today. We have lease extension solicitors across East Sussex ready to help you at whichever office is most convenient.
You can reach us at our offices in Battle, Bexhill-on-Sea, Eastbourne, Hastings or Rye.
Or complete our online enquiry form and a member of our team will be in touch shortly.
To speak to our lease extension solicitors directly, call us on 0800 001 4543 or contact your nearest office:
- Battle: 01424 772401
- Bexhill-on-Sea: 01424 730630
- Eastbourne: 01323 411020
- Hastings: 01424 434192
- Rye: 01797 222955
