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Statutory vs Informal Lease Extensions Whats the Difference
If you are thinking about extending the lease of your flat, you may be presented with two options:
- A statutory lease extension
- An informal (non-statutory) lease extension
These routes operate very differently and offer different levels of protection.
What is a statutory lease extension?
A statutory lease extension follows a formal legal process. If you qualify, you are entitled to:
- An additional 90 years added to your lease
- Ground rent reduced to £0
For more information see our guidance here: How the Statutory Lease Extension Process Works and Demystifying the Statutory Lease Extension Process
What is an informal lease extension?
An informal lease extension is negotiated privately with the landlord outside a legal framework.
For more information see our guidance here: My Landlord Has Offered an Informal Lease Extension - Should I Accept It?
Short summary of key differences:
Certainty:
- Statutory – landlord must proceed.
- Informal – landlord can withdraw or delay.
Length and Ground Rent:
- Statutory – fixed 90 years extension, no ground rent.
- Informal – often shorter with ongoing rent.
Price:
- Statutory – calculated using a valuation framework.
- Informal – landlord sets the price – often ‘take it or leave it’.
Mortgage Lenders:
- Statutory – no lender consent required.
- Informal – lender consent usually required.
Selling your flat
Statutory claims can be assigned to a buyer. Informal extensions are usually personal and may complicate a sale.
For more information see our guidance: Extending Your Lease When You’re Selling a Flat
Key points
Statutory lease extensions provide long‑term certainty and legal protection. While informal extensions may offer greater flexibility, they can also involve risks and should be considered carefully.
To obtain a tailored cost estimate and receive our detailed client guides on the statutory lease extension process and key considerations for leaseholders, please contact our lease extension specialists.