As Enfield Surveyors, we've helped hundreds of leaseholders across North London successfully extend their leases. If your lease is running short, this comprehensive guide explains everything you need to know about lease extensions, costs, legal rights, and how our chartered surveyors can help you through the process.
Is Your Lease Running Out?
If your lease has fewer than 80 years remaining, you should act now. Property values decline significantly as leases shorten, and extension costs increase dramatically below 80 years due to marriage value.
Understanding Leasehold Property
Leasehold means you own the property for a fixed period (the lease term) but not the land it stands on. When the lease expires, ownership reverts to the freeholder. Most flats in Enfield, Barnet, Haringey, and across London are leasehold.
As the lease shortens, your property becomes less valuable and harder to mortgage. Banks typically won't lend on properties with less than 70 years remaining, and some require minimum terms of 80 or even 85 years beyond the mortgage term.
Why Lease Length Matters
Your Legal Rights to Extend
Under the Leasehold Reform, Housing and Urban Development Act 1993, you have the legal right to extend your lease if you meet these qualifying criteria:
The Lease Extension Process
Extending your lease follows a formal legal process. Our chartered surveyors guide you through each stage:
1. Initial Valuation
Our RICS registered valuers assess your property and calculate the premium (cost) to extend your lease. This includes the value of extending the lease plus marriage value if applicable.
Timeframe: 1-2 weeks | Cost: £400-£800
2. Serving Notice
Your solicitor serves a formal Section 42 Notice on the freeholder, offering the premium amount. This must include our professional valuation.
Timeframe: 1-2 weeks to prepare
3. Freeholder Response
The freeholder has two months to respond with a counter-notice, either accepting your offer or proposing a different premium.
Timeframe: Up to 2 months
4. Negotiation
If the freeholder disputes the premium, negotiations begin. Our surveyors negotiate on your behalf using comparable evidence and professional expertise.
Timeframe: 1-6 months
5. Agreement or Tribunal
Most cases settle through negotiation. If not, the First-tier Tribunal (Property Chamber) determines the premium. We provide expert witness services if needed.
Timeframe: 3-9 months if tribunal required
6. Legal Completion
Once the premium is agreed, solicitors complete the legal work and your new lease is granted, typically adding 90 years plus the remaining term, with ground rent reduced to nil.
Timeframe: 1-2 months
Lease Extension Costs
Understanding the full costs helps you budget effectively:
| Cost Component | Typical Range | Details |
|---|---|---|
| Premium to Freeholder | £5,000-£50,000+ | Depends on lease length, property value, ground rent |
| Surveyor Valuation | £400-£800 | Professional RICS valuation of premium |
| Your Legal Costs | £1,000-£2,500 | Solicitor fees for your side |
| Freeholder's Costs | £1,000-£3,000 | Freeholder's legal and surveyor fees (you pay) |
| Stamp Duty | £0-£5,000+ | If premium exceeds £125,000 |
Marriage Value Explained
For leases under 80 years, you must pay 50% of the "marriage value" - the increase in property value gained from extending the lease. This can add £10,000-£30,000+ to the cost.
This is why acting before your lease drops below 80 years saves significant money.
Informal vs Formal Extension
You have two routes to extending your lease:
How Our Chartered Surveyors Help
Enfield Surveyors provide comprehensive lease extension services throughout North London:
Professional Valuation
We calculate the correct premium using RICS methodology, comparable evidence from recent Enfield and North London lease extensions, and detailed analysis of your property's characteristics.
Expert Negotiation
Our experienced surveyors negotiate with freeholders and their representatives, using our knowledge of local market conditions and hundreds of completed lease extensions to secure the best outcome.
Tribunal Representation
If your case proceeds to the First-tier Tribunal, we provide expert witness services, preparing detailed evidence and representing your interests at hearings.
Full Project Management
We coordinate with your solicitors, liaise with the freeholder's surveyor, handle all technical aspects, and keep you informed throughout the process.
Collective Enfranchisement Alternative
If you're in a block of flats, you might consider collective enfranchisement - buying the freehold together with other leaseholders. This requires at least 50% of flat owners participating and offers advantages:
- Own the freehold collectively
- Control over building management
- Ability to grant yourself very long leases (999 years)
- No future lease extension costs
- Potentially lower per-person cost than individual extensions
Our surveyors advise on both individual extensions and collective enfranchisement, helping you determine the best strategy for your circumstances.
Frequently Asked Questions
Not using the formal statutory route. However, you can attempt an informal extension by negotiating directly with your freeholder. Our surveyors can still provide valuations and negotiate on your behalf for informal extensions.
Marriage value represents the increase in property value from extending the lease. For leases under 80 years, you pay 50% of this value. On a £400,000 Enfield flat with 65 years remaining, marriage value might add £15,000-£25,000 to the premium.
If you qualify under the statutory route (owned for 2+ years), the freeholder cannot refuse. They can dispute the premium amount, but must participate in the process. If agreement can't be reached, the tribunal determines the price.
Typically 6-12 months for statutory extensions. Informal extensions can be quicker (2-6 months) if the freeholder is cooperative. Tribunal cases may take 12-18 months total.
Generally, negotiate a price reduction reflecting the cost to extend, then extend after purchase. You'll need to wait two years to use the statutory route. Our surveyors can provide pre-purchase advice on lease extension costs.
Statutory extensions reduce ground rent to zero (peppercorn rent). This means no more annual ground rent payments, adding to your property's value and desirability.
Yes, but you can only use the statutory route once every 24 months. After extending, you could theoretically extend again decades later if needed, though most extensions (adding 90 years) make this unnecessary.
Need Expert Help with Your Lease Extension?
Enfield Surveyors have extensive experience with lease extensions throughout North London. Our chartered surveyors provide professional valuations, expert negotiation, and comprehensive guidance through the entire process.
Get Your Free Initial Consultation