For the average UK property, lease extensions cost £7,022 in total. This includes the lease extension premium, surveyor and solicitor fees, and any charges from the freeholder. The exact amount depends on your property’s value, how much time is left on your lease, and the ground rent you pay.
It's crucial to act early as delaying a lease extension can be expensive in the long run. Once your lease drops below 70 years, it can seriously impact your property’s value and make it harder to remortgage or sell.
We know the process of extending a lease can feel overwhelming, so this guide focuses purely on the costs and practical tips. We’ll break down what you’ll pay, why it matters, and how to save money along the way.
What is a Lease Extension?
Owning a leasehold property means you own the right to live in a property for a set period, but the land the property is built on is owned by a freeholder.
Leases tend to last for 99 or 125 years. After this, the property must be returned to the freeholder. However, most leases are extended by the leaseholder before then.
When you extend your lease, you’ll need to pay the freeholder a premium. Once the lease drops below 80 years, the cost of extending it goes up significantly, so we highly recommend extending it before this point to save money.
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How Much Does the Lease Extension Premium Cost?
The main cost involved in extending a lease is the lease extension premium (the amount you pay to the freeholder to extend your lease).
Here are the average lease extension premium costs when extending a lease by 90 years or more on a property priced at £292,000 with £0 ground rent.
| Length Remaining on the Lease | Cost of Lease Extension Premium |
|---|---|
| 90 Years | £3,318 |
| 85 Years | £4,235 |
| 80 Years | £5,405 |
| 75 Years | £15,504 |
| 70 Years | £16,457 |
| 65 Years | £17,673 |
| 60 Years | £19,225 |
Use our Lease Extension Calculator for a personalised estimate based on your property’s value and lease details.
Additional Lease Extension Fees
As well as the premium, there are additional fees that the leaseholder must pay, as they are responsible for covering costs for themselves and the freeholder.
Here are some additional costs the leaseholder must account for, based on a £292,000 property:
| Service | Average Cost (£)* |
|---|---|
| Surveyor Valuation | £452 |
| Solicitor Fees | £1,820 |
| Freeholder’s Valuation | £452 |
| Freeholder’s Solicitor Fees | £880 |
| Land Registry Fees | £100 |
Surveyor Fees
Valuation costs are £452 on average, and you will be responsible for paying your surveyor and the freeholder’s surveyor, bringing the total average surveyor cost to £904.
Solicitor Fees
As with surveying, you must also take on the freeholder’s solicitor's fees as well as your own. This comes to £2,700 in total, which accounts for both parties, including the negotiation fees.
Land Registry Fees
The new lease is checked to confirm the terms are correct and filed with the Land Registry. This costs £100 on average.
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Factors that Affect the Lease Extension Cost
Lease extension costs can vary greatly and can be impacted by the following:
Length of Lease
Make sure you begin the process before your lease falls below 80 years. After this, you have to pay an extra cost called ‘marriage value’, meaning a lease extension will get progressively expensive.
Your Surveyor and Solicitor
Appoint a specialist surveyor and solicitor, as scrimping on professional costs could result in you paying over the odds for your lease extension.
Formal vs Informal Extension
Your freeholder may offer an informal lease extension to cut upfront costs. However, they may use an informal lease extension to increase ground rent, making the property difficult to sell in future.
How to Extend Your Lease
The lease extension process is as follows:
Instruct a Solicitor
Hiring a solicitor is the first step in the process, as they will acquire the forms needed. They will get the ball rolling and offer expert advice where needed.
Obtain a RICS Valuation
You must receive a lease extension valuation from a RICS surveyor or valuer. They will look at the current length of the lease, the property’s location, ground rent, and terms in the contract. Your surveyor will then provide a property valuation with and without the lease extension.
Submit an Opening Offer
Your surveyor will then suggest an opening offer, and your solicitor can then serve a Section 42 notice to formally begin the process.
Establish Timetable
The notice triggers a timetable under which the freeholder must respond within 2 months and serve their own notice. Your solicitor and the freeholder’s solicitor will then negotiate to reach a price both sides agree on.
Leasehold Valuation Tribunal (if needed)
If you can’t agree a price within 2 months, you can make an application to the Leasehold Valuation Tribunal (LVT). The LVT can make a ruling on a fair price, but it’s an expensive process.
Complete the New Lease
Once a price is agreed and signed by both parties, your solicitor will register the new lease with the Land Registry.
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Why We Recommend Extending Your Lease Early
If your lease drops below 80 years, you’ll have to pay an extra charge called ‘marriage value’ (so called as it reflects the added value when leaseholder and freeholder interests are combined), which can add thousands to the total cost.
A shorter lease can also make your property harder to sell or remortgage, as many buyers and lenders see it as a risk.
For example, extending a lease with 85 years left might cost around £4,235. But if you wait until it drops to 75 years, the cost could jump to over £15,000 — a big increase that you could have avoided.
That said, the exception is if your lease is already below 70 years, it's worth waiting until 2026. This is because marriage value is expected to be abolished under proposed leasehold reforms. Holding off could save you thousands of pounds.
How to Find a RICS Valuer
Before proceeding with your lease extension application, you must have a RICS Valuation carried out. We can connect you with up to 6 RICS valuers in your local area. Fill out our valuation survey comparison form to compare quotes and save up to 70% on your valuation fees.
Our valuers have passed a strict verification process, which includes being regulated by RICS. This means all jobs adhere to the highest industry standard.
*Based on the average service costs for Compare My Move users. See how our data works.
FAQs
How Long Does the Process Take?
The lease extension process takes 3 to 12 months on average, depending on the complexity of your case and how quickly you and the freeholder can agree on a price. The new lease must also be registered with the Land Registry.
When Should you Extend a Lease?
You should extend before it falls below 80 years, as the extension cost will rapidly increase. Potential buyers will be put off by a short lease, so it’s highly recommended to extend it before selling.
Can You Buy the Freehold?
Buying your freehold is an alternative to extending your lease. But if you live in a block of flats, you’ll need at least half the other leaseholders to agree to buy the freehold as a group. This is known as ‘collective enfranchisement’.
