Quick Answers
How long is the extension now?
990 years added to the current unexpired term — so a flat with 70 years left becomes 1,060 years. The previous statutory term was 90 years.
What is the ground rent after extension?
A peppercorn — effectively zero. The freeholder cannot charge ground rent on the extended term.
Do I need to have owned the flat for two years first?
No — the two-year ownership requirement was abolished by the 2024 Act. You can serve notice from the day you acquire it.
The short answer: a statutory lease extension under the new rules adds 990 years to the unexpired term at a peppercorn ground rent. The two-year ownership requirement is gone.
The honest context: the process itself — notice, counter-notice, negotiation, Tribunal if necessary — is structurally familiar, even though the new term and eligibility rules are much more favourable to leaseholders.
Key Takeaways
990 years makes the lease effectively permanent
The shift from 90 to 990 years removes lease length as a recurring issue for any realistic future owner, buyer, or lender.
The two-year rule removal matters most for buyers of short-lease flats
Buyers can now act straight away rather than waiting while the lease continues to shorten.
Marriage value removal can cut the cost of extending short leases
This is one of the biggest practical cost changes for leases under 80 years, subject to implementation status.
The statutory process is a legal right — but it requires a valid notice
A defective notice can create delay or even invalidate the claim, so specialist advice still matters.
The premium is negotiated — and most claims settle without the Tribunal
Most cases settle after valuers negotiate, rather than going all the way to determination.
Acting before the lease gets shorter is still important
Even with valuation reforms, delay generally increases the premium rather than reducing it.
What the Leasehold and Freehold Reform Act 2024 Changed for Lease Extensions
Statutory extension term: 90 years added to unexpired term. Now: 990 years added.
Two-year ownership requirement. Now abolished. You can serve notice on day one of ownership.
Marriage value payable on leases under 80 years. Marriage value removed from the formula.
Ground rent on extended term. Unchanged. It remains a peppercorn.
Who Qualifies for a Statutory Lease Extension
The qualifying conditions are more accessible under the 2024 Act than they were before it.
- You must be a qualifying leaseholder. Most long residential leases granted for more than 21 years will qualify.
- The two-year ownership requirement is abolished. You can act from day one of ownership.
- You must own the flat, not sublease it.
- The building must not be excluded. Most standard residential blocks are not excluded.
You do not need the cooperation of other leaseholders in the building to extend your own lease. This is an individual statutory right.
The Process: Step by Step
Obtain a valuation and appoint a solicitor
Before serving notice, appoint a specialist leasehold valuer and a solicitor so the premium figure and the notice itself are properly prepared.
Serve the tenant's notice (Section 42 notice)
The tenant's notice is the formal document that starts the statutory process. It must be accurate and validly served.
Freeholder responds with their counter-notice
The freeholder either accepts the right and proposes their own premium, or challenges the claim on technical grounds.
Valuers negotiate the premium
Both sides' valuers negotiate. Most claims settle here rather than going to the Tribunal.
First-tier Tribunal determines the premium
Where the parties cannot agree, either side can apply to the Tribunal for a binding decision.
New lease granted and registered
Once the premium is agreed or determined, the new lease is completed and registered at HM Land Registry.
What It Costs
The total cost of a statutory lease extension has three components: the premium, your own professional costs, and any recoverable freeholder costs.
The premium
Determined by the valuation formula. This varies depending on property value, ground rent, and unexpired term.
Varies by propertyLeaseholder's professional costs
Typically solicitor fees, valuer fees, and registration costs.
Professional fees applyFreeholder's reasonable costs
The position has changed under the 2024 Act, so the current recoverability position should be checked with your solicitor.
Confirm current positionWhat drives the premium up or down
The shorter the lease and the higher the property value, the higher the premium is likely to be.
Acting early usually costs lessBefore assuming marriage value no longer applies to your own claim, confirm the current commencement position with a specialist leasehold solicitor.
The Short Lease Urgency Threshold: Why Timing Matters
Even with valuation reform, the cost of extension tends to increase as the unexpired term shortens.
| Unexpired term | What It Means — and What to Do |
|---|---|
| Above 90 years | No immediate urgency. Mortgageability is usually fine and the premium is comparatively lower. |
| 80–90 years | A sensible planning window. It is usually better to act before the term gets meaningfully shorter. |
| 70–80 years | Act promptly. Buyers and lenders start becoming more cautious in this range. |
| Below 70 years | Urgent. Mortgageability can become difficult and the premium is likely to be materially higher. |
| Below 60 years | Critical. Many lenders will not lend and every delay tends to make the position worse. |
Informal vs Statutory Extension: Which Route Should You Take?
A leaseholder can also extend informally by negotiating directly with the freeholder outside the statutory process.
The advantages are speed and flexibility. The risks are reduced protection on premium and terms.
- No statutory protection on the premium.
- New lease terms may be worse than the original.
- Pressure timing can weaken your negotiating position.
The general principle is simple: if the informal terms are clearly fair, it may be quicker. If there is any doubt, the statutory route provides far better protection.
For leaseholders who want to go further than a lease extension and acquire the freehold, see Leasehold Enfranchisement in 2026. For wider reform context, see Commonhold and the Leasehold Reform Bill 2026.
Frequently Asked Questions
990 years added to the current unexpired term. A flat with 70 years remaining becomes 1,060 years.
A peppercorn — effectively zero. The freeholder cannot charge ground rent on the extended term.
No. The two-year ownership requirement was abolished, so you can act from day one of ownership.
In almost all cases, no. They can dispute the premium, but not simply refuse a valid statutory claim.
Marriage value was a cost element affecting shorter leases. The 2024 Act removes it from the statutory formula, subject to current implementation status.
Short lease — or managing a block where leaseholders are asking about extension?
Neon works with leaseholders and RTM companies across East London and Essex on lease extensions, collective enfranchisement, and the block management that follows.
Talk to Neon about your block →