How the Statutory Lease Extension Process Works

If you own a leasehold flat, the length of your lease matters more than many people realise. As a lease gets shorter, it can affect the value of your home and make it harder to sell or remortgage.

One of the main ways to deal with this is through a statutory lease extension, which gives qualifying leaseholders a clear legal right to extend their lease under the Leasehold Reform, Housing and Urban Development Act 1993.

This article explains how the statutory lease extension process works in practice, what you are entitled to, and what to expect at each stage.  

What is a statutory lease extension? 

A statutory lease extension is a legal process that allows qualifying leaseholders to compel their landlord to grant a lease extension on prescribed terms.

Under the statutory route, the key terms are fixed by law:

• An additional 90 years added to the existing lease term
• Ground rent reduced to a peppercorn (£0)

Who can use the statutory process? 

Most owners of long residential leases of flats will qualify. Broadly, you will usually be eligible if:

• You are the registered owner of the flat
• The lease was originally granted for more than 21 years

There are certain exclusions though, and we can check for these as part of our initial work for you.

STEP 1: VALUATION

Before starting a statutory claim, you should obtain a specialist lease extension valuation. This estimates the premium payable and the figure to be included in the formal claim notice.

STEP 2: SERVING THE STATUTORY NOTICE

The process formally begins by serving a Claim Notice (section 42 notice) on the landlord. Once served, the leaseholder (flat owner) becomes responsible for the landlord’s reasonable legal and valuation costs. The law the provides a timetable for progression and next steps.  

STEP 3: THE LANDLORD’S RESPONSE

The landlord must respond by serving a counter-notice, by the specified deadline.  This will confirm certain things, like whether they admit your claim and, if so, whether they accept your proposed terms.  Where your proposed terms are not accepted, the landlord counter-proposes alternative terms (often, a higher price).  

During the gap between the landlord receiving your claim and providing their counter-notice they may request: inspection of the flat; evidence of your ownership; a 10% deposit (minimum £250).  

STEP 4: NEGOTIATION

After the landlord’s counter-notice there is a period of negotiation to settle the terms of the lease extension, including the price payable.  

The parties surveyors negotiate the premium while lawyers negotiate the legal terms of the lease extension and drafting of the deed.  

STEP 5: TRIBUNAL (IF REQUIRED)

If agreement cannot be reached, either party may apply to the First-tier Tribunal to determine the terms.

STEP 6: COMPLETION AND REGISTRATION

Once agreed, the lease extension completes and is registered at the Land Registry.

How long does it take? 

Many statutory lease extensions take between three and six months, sometimes more depending how long the negotiation stage takes, or any other complicating factors which we can discuss with you.  

Demystifying the Statutory Lease Extension Process

For more information see our guidance on Demystifying the Statutory Lease Extension Process or speak to one of our lease extension experts. 

Next Steps  

This overview and our other online information is intended only as general overview of usual processes and considerations; it is not a substitute for proper legal advice tailored to your personal circumstances.  Always speak to our legal experts for personal legal advice to understand your options.