Why Extend Your Lease?

Extending your lease now can save you money and stress later. Here’s why thousands of leaseholders do it:

Protects Your Property Value

The shorter your lease, the lower the market value of your home. A longer lease keeps your investment strong.

Keeps Your Home Mortgage‑Friendly

Most lenders want a lease with plenty of years left. Extending helps make sure your home remains easy to sell or refinance.

Avoids Spiralling Costs

Once a lease drops below 80 years, something called marriage value kicks in — and that can make extending much more expensive. Acting early saves money.

Ways to Extend Your Lease

There are two routes you can take:

Informal Lease Extension (Most Common)

This is the simplest route and is available to shared owners and full leaseholders.

  • Agreed directly between you and PA Housing
  • Usually quicker and more cost‑effective
  • Adds 90 years to flat leases and 50 years for houses
  • Ground rent becomes peppercorn (essentially zero)
  • Our offer is fixed and non‑negotiable — making the process straightforward
  • You’ll cover valuation costs, your own legal fees, and ours

Formal (Statutory) Lease Extension

  • Only available if you own 100% of your home.
  •  Initiated by your solicitor serving a Section 42 Notice
  • Follows set legal steps and timelines
  •  Adds 90 years to your existing term
  • Ground rent reduced to peppercorn
  • More procedural, often slower and more expensive
  • Useful if you want the protection of a legal framework or if negotiations are needed
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Think of it as the increase in your home’s value created by granting a longer lease.

What About Marriage Value?

If your lease is under 80 years, the law requires you to split that uplift with the freeholder — and this can make extensions much more expensive.

Moral of the story: extend before you hit 80 years if you can!

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How the Valuation Works

We use an independent RICS surveyor to calculate the premium payable for your lease extension.

They assess:

·         Your property’s current market value

·         The lease length

·         Local market comparisons

·         Loss of ground rent to the landlord

·         Reversion value

·         (If applicable) marriage value

Please note: PA Housing does not control the valuation result.

 

How to Start Your Lease Extension

Just contact our Home Ownership Team:

[email protected]

Or call our customer services: 0300 123 222

Valuation fees:

South: £495.00 (incl. VAT)

Midlands: £780.00 (incl. VAT)

Your valuation is valid for six months.

Legal fees:

£750.00 plus VAT (approx.)

Note: This fee only applies to the informal route.

 

What Happens Next?

  • We instruct an independent RICS valuer
  • You receive a fixed, non‑negotiable premium offer
  • Flats get 90 extra years; houses get 50 years
  •  Ground rent becomes peppercorn
  • You pay the premium, our legal/admin costs, your solicitor’s fees, and any arrears
  •  You get the valuation report once the extension completes

 

Looking Ahead: Leasehold Reform

The Government is introducing changes through the Leasehold and Freehold Reform Act 2024, which is expected to update the way lease extensions work.

Once the legislation is finalised and comes into force, PA Housing will review and update our processes to ensure they fully comply with the new legal requirements.

Early indications suggest the new rules may make lease extensions simpler and potentially more affordable for both Leaseholders and Shared Owners. However, it is entirely your choice whether you wish to proceed with a lease extension now or wait until the new legislation is implemented.

We will continue to keep customers informed as more details become available.