What to do next
All qualifying leaseholders have the legal right to extend their lease under the formal process set out in the Leasehold Reform Housing and Urban Development Act 1993. In many cases, landlords may also offer an informal route, which can be quicker, cheaper, and more flexible.
You’re not committed to extend just by starting the process but it’s worth remembering that the cost of a lease extension usually increases over time as your lease gets shorter and property values rise.
Before proceeding, it is advisable to make sure you can access or raise the necessary funds to pay the landlord’s premium, valuation and legal costs (e.g. from savings or remortgaging). Many lenders will make a further advance for these costs, sometimes without valuation, as the longer lease improves their security.
The extension premium and costs are usually paid on completion but some landlords offering an informal (voluntary) route require their valuation and admin fees to be paid before processing your application. These are typically non-refundable, so only proceed if you’re financially ready.
