Cost guide
How much does a Lease extension cost?
Thinking about extending your lease? It's a smart move that can add value to your flat and give you peace of mind. While the idea of legal costs might feel a bit daunting, we're here to break down what you can expect. Our guide helps you understand the likely costs involved in extending your lease, whether you choose the formal route or an informal agreement. You'll see what you're paying for and feel much more confident about the process.
Typical price
£1,000 to £3,000
What changes the price
Lease Term Remaining
A shorter lease, especially under 80 years, often means a higher cost to extend.
Property Value
More expensive flats usually have a higher premium for the lease extension itself.
Ground Rent Amount
High or escalating ground rent can significantly increase your overall lease extension cost.
Leaseholder's Legal Fees
You'll need a solicitor to guide you through the process, review documents, and protect your interests.
Freeholder's Legal Fees
You are typically responsible for covering your freeholder's reasonable legal and valuation costs too.
Valuation Fees
A specialist valuer assesses the premium you'll pay, and you might need two if negotiations are complex.
Prices by region
| Region | Low | Typical | High |
|---|---|---|---|
| London | £1,800 | £2,750 | £4,000 |
| South East | £1,500 | £2,200 | £3,500 |
| South West | £1,200 | £1,900 | £3,000 |
| East of England | £1,300 | £2,000 | £3,200 |
| Midlands | £1,000 | £1,700 | £2,800 |
| North West | £900 | £1,600 | £2,700 |
| North East and Yorkshire | £800 | £1,500 | £2,600 |
| Scotland and Wales | £900 | £1,650 | £2,750 |
Questions people ask
What is a lease extension?
It's the process of adding extra years onto the remaining term of your lease, usually making it much longer. This can significantly increase your property's value and make it easier to sell.
Why should I extend my lease?
Extending your lease protects your investment, makes your property more attractive to lenders, and stops the lease from falling below that important 80 year mark where costs often jump.
What is the difference between formal and informal lease extension?
A formal extension follows a set legal process, giving you the right to a 90 year extension with zero ground rent. An informal extension is a direct negotiation with your freeholder, which can be quicker but may not offer the same terms.
What costs am I responsible for?
You'll pay your own legal fees, your own valuation fees, and typically the reasonable legal and valuation fees incurred by your freeholder. There's also the 'premium' or cost to actually buy the extra years on your lease.
Can I do a lease extension myself?
While it's possible, it's highly recommended to use specialist solicitors and valuers. They ensure you get the best deal, protect your rights, and handle all the complex paperwork correctly.
When is the best time to extend my lease?
The general advice is to extend your lease as soon as possible, especially if it's nearing or below 90 years. Costs tend to rise significantly once a lease drops below 80 years.