Guiding You Through The The Lease Extension Process

How Long Do I Have Left on My Lease Extension?

Picture this: a tenant sits in her flat, scrolling anxiously through her phone. Her lease is down to less than 80 years, and every search result is filled with daunting terms like “statutory rights” and “diminishing property value.” Meanwhile, across town, her landlord stares at a mountain of paperwork, overwhelmed by the complexities of the process.

Sound familiar? You are not alone. Lease extensions are often overwhelming, with legal jargon leaving both tenants and landlords unsure of how to navigate the process.

At Lyons Bowe, we specialise in simplifying lease extensions, breaking down the process, its benefits, and how to get it right the first time.

What Are Lease Extensions?

Lease extensions, as the name suggests, are legal agreements to extend the length of a property lease. There are two key perspectives to consider:

1. Tenants: Protecting the value of their leasehold property.
2. Landlords: Preserving the overall value of their freehold investment.

Since leases are assets that depreciate over time, action is crucial. When a lease dips below 80 years, it can drastically reduce the property’s appeal to buyers and may lead mortgage lenders to reject applications. To make matters worse, extending a lease under 80 years triggers “marriage value,” a costly premium that accounts for the increase in the property’s market value.

For landlords, short leases do not just diminish the property’s worth—they can also create friction with tenants. Proactively extending leases protects your investment and fosters smoother relationships.

The Lease Extension Process

Step 1: Valuation
A professional valuation determines the cost of the lease extension, factoring in the lease length, property value, and ground rent.

Step 2: Section 42 Notice
Leaseholders must formally notify their landlord of their intention to extend the lease. This includes your offer and proposed terms.

Step 3: Landlord Response
The landlord has two months to reply with a Counter Notice, either accepting or proposing alternative terms. Negotiations often follow, making legal expertise invaluable to secure a fair deal.

Step 4: Agreement or Tribunal
If both parties agree, great! If not, the case can be referred to the First-Tier Tribunal for a resolution.

Why Acting Early Matters

If your lease is close to the 85-year mark, it is time to act. Waiting until it drops below 80 years could dramatically increase costs. As they say, “A stitch in time saves nine.”

Under the Leasehold Reform (Housing and Urban Development) Act 1993, most leaseholders have the right to extend their lease by 90 years in addition to the existing term, with ground rent reduced to a “peppercorn” (essentially zero). To qualify, you must have owned the property for at least two years. For landlords, understanding these rights is equally crucial to ensure a smooth process and avoid disputes.

The Risks of Inaction

Delaying a lease extension comes with significant financial risks. This goes for both tenants and owners. As time passes, not only does the cost of the extension increase, but the property may become harder to sell. Buyers are often hesitant to purchase a property with a short lease due to higher costs and complications, limiting your market options.

For landlords, failing to address short leases can lead to prolonged disputes, financial losses, and strained relationships with tenants. Acting early not only saves money but also ensures long-term stability—which looks good on paper.

Where Lyons Bowe Comes In

Lease extensions are not straightforward—they involve legal, financial, and procedural aspects that are not easy to navigate. That is where conveyancing solicitors come in.
Experienced conveyancing solicitors guide you through every step, from valuation to negotiation. We help you understand the premium (the cost for additional years), professional fees, and landlord expenses to ensure you are fully informed.

More importantly, we help you avoid costly pitfalls, such as waiting too long and triggering marriage value, or overpaying due to unfavourable terms. Throughout the process, we keep you updated and on track to meet deadlines.

Let Lyons Bowe Simplify Lease Extensions For You

Now that you have a clearer idea of what is expected as a leaseholder, it is time to make your next move—with help from our conveyancing team.

For tenants, extending a lease protects the value of their property and keeps it attractive to future buyers. For landlords, it safeguards long-term investments and improves tenant relationships.

Approaching lease extensions with professional support is the best way to ensure a fair, and cost-effective outcome.

At Lyons Bowe, we get it—your rights as a tenant or your property as a landlord mean everything. That is why we are here to guide you through the lease extension process, breaking it down and taking care of all the details.

Let us handle the process, from start to finish for you. Get in touch with Lyons Bowe today to secure the best legal and financial results.