Home London Lease extension in London 2026 — when to act, what it costs

London Lease Extension

Lease extension in London 2026 — when to act, what it costs

The two-year ownership rule was abolished in February 2025 — you can extend immediately on purchase. That removes one timing constraint, but the 80-year marriage-value cliff still costs real money.

Updated 2026-09-03

The statutory right to extend

A qualifying leaseholder can require the freeholder to grant a 90-year extension at a peppercorn ground rent. The price — the 'premium' — is set by a formula referencing the current rent, the years remaining, and, below 80 years, marriage value. The two-year ownership qualification was abolished in February 2025, so you can now start an extension immediately on purchase. The freeholder must respond to a formal notice within two months, and the process typically takes 6–12 months if uncontested.

Should you extend now? Decision by lease band (2026)

Cost & mortgage impactDecision
Lease 100+ yearsLow-cost extension when chosen; full lender accessNo urgency — monitor as the lease approaches 85 years
Lease 85–99 yearsReasonable cost; no marriage value; good lender accessExtend when selling within the next 5 years
Lease 80–84 yearsNo marriage value yet; narrowing lenders; reform timing uncertainExtend now — don't assume reform arrives before the cliff
Lease under 80 yearsMarriage value in force and growing; restricted lendersUrgent — get a RICS surveyor's premium calculation first

Marriage-value abolition (LAFRA 2024) is law but not yet commenced as of 2026; expected no earlier than 2027–2028. Confirm the current position with a specialist leasehold solicitor before you act.

Indicative cost ranges (not a valuation)

Premiums vary by flat value, current rent and lease length. As rough orientation: a £400,000 flat with an 85-year lease might cost £8,000–£15,000 to extend; the same flat at 75 years, with marriage value, might cost £20,000–£40,000. These are indicative only — the actual premium needs a formal RICS valuation. Budget also for your solicitor (£1,500–£3,000), the freeholder's solicitor (£1,500–£2,500, payable by you) and the RICS valuation (£500–£1,500).

Weigh the extension inside your bigger decision

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Frequently asked questions

When should I extend my London lease?

Before it falls below 80 years, where marriage value kicks in and lenders narrow. Above 90–100 years there is no urgency; between 80 and 85, plan to extend soon, especially if you may sell within five years.

Can I extend my lease straight after buying?

Yes — the two-year ownership qualification was abolished in February 2025, so a qualifying leaseholder can begin a statutory extension immediately on purchase.

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