Connaught Law Limited
  • Real Estate

    Real Estate Law Overview
    Property Transactions
    Eviction & Possession Claims
    Lease Extension Services
    Lease Extension Calculator
    Approved Lender Panel
    Bridge & Gap Financing
    High Net Worth Individuals (HNWI) Property Guidance
    Stamp Duty Land Tax (SDLT) Calculator
    Collective Enfranchisement (Tenant Purchase)

  • Litigation
    Litigation Overview
    Commercial Litigation
    Contractual Dispute Resolution
    Judicial Review
    Personal Injury Claims
    Medical Negligence Claims
    Road Traffic Accident Claims
    Industrial Disease Claims
  • Immigration
    Immigration Law Overview
    UK Visit Visa
    Student Visa Applications
    Family Visas
    Business & Work Immigration
    Adequate Maintenance Calculator & Requirements (2025)
    Settlement & British Citizenship
    EEA & European Nationals
    UK Visa Refusal Advice
    Administrative Review
    Immigration Appeals
    UK Visa Judicial Review
    Human Rights & Asylum Applications
    Deportation & Removal Appeals
    Sponsor Licence Revocation
  • Family Law
    Family Law Overview
    Divorce Proceedings
    Civil Partnership Dissolution
    Child Contact & Custody Agreements
    Domestic Violence Protection
    High Net Worth (HNW) Family Law
  • Employment Law
    Employment Law Overview
    Unfair Dismissal Claims
    Constructive Dismissal
    Workplace Discrimination
    Bullying & Harassment
    Bonus Disputes
    Settlement Agreements
  • Tax Law
    Tax Law Overview
    Private Client Tax Services
    Tax Planning & Advisory
    Corporate Tax & Compliance
  • Others
    Financial Services Law
    Insurance Disputes
    Criminal Defence & Investigations
    Global Citizenship & Residency
  • Blog
  • Categories
    Immigration Updates
    Family Law Advice
    Real Estate Law UK
    Litigation Insights
    Tax Law Advice
    Banking & Dispute Resolution
    Landlord & Tenant Law
    Criminal Law & Defence
    Brexit Legal Developments
  • Team
  • Careers
  • Contact

Lease Extension Calculator

Home » Real Estate » Lease Extension Calculator

Land Lease Extension Calculator


years months









Important Disclaimer

This calculator is for general guidance only*.

 

Lease Extension Knowledge Base

Understanding Lease Extensions: Why They Matter

As a leaseholder, the number of years remaining on your lease is a critical factor affecting your property’s value and marketability. If your lease is dropping below 90 years, extending it becomes increasingly important to:

  • Protect your property’s value from depreciation
  • Enhance marketability for potential buyers
  • Improve mortgage options as lenders prefer longer leases
  • Secure your long-term investment in the property

Once a lease falls below 80 years, the cost of extending increases significantly due to what’s known as “marriage value” – a legal concept that represents the increase in property value resulting from the lease extension, which must be shared with the freeholder.

The Lease Extension Process Explained

Statutory Route (Under the Leasehold Reform, Housing and Urban Development Act 1993)

Qualifying leaseholders have the legal right to extend their lease by 90 years (for flats) or 50 years (for houses) and reduce ground rent to zero. To qualify, you must:

  • Have owned the property for at least 2 years
  • Have a lease that was originally granted for more than 21 years

The statutory process involves:

  1. Initial Notice: Serving a formal Section 42 notice on the freeholder
  2. Counter-Notice: The freeholder responds with their proposed premium
  3. Negotiation: Both parties’ valuers negotiate the final premium
  4. Agreement or Tribunal: If negotiations fail, the case proceeds to the First-tier Tribunal
  5. Completion: New lease is granted once terms are agreed

Informal Route

You may also approach your freeholder directly to negotiate a lease extension outside the statutory process. While potentially faster, this approach lacks statutory protections and might result in:

  • Less favorable terms
  • Continued or increased ground rent
  • Fewer years added to the lease

How Our Lease Extension Calculator Works

Our calculator provides an estimate based on three key components that determine lease extension premiums:

1. Ground Rent Loss

This compensates the freeholder for future ground rent they will no longer receive. The calculation uses:

  • Your current annual ground rent
  • Years remaining on the lease
  • A capitalization rate (typically 5-7%)

2. Reversionary Interest

This represents the freeholder’s right to take back possession of the property when the lease expires. The calculation considers:

  • The property’s current value
  • Years remaining on the lease
  • A deferment rate (typically 4.75-5.25% for houses, 5-6% for flats)

3. Marriage Value

Applicable when leases have less than 80 years remaining, this represents the increase in the property’s value resulting from the lease extension. The calculation includes:

  • The property’s value before extension
  • The property’s value after extension
  • The share of this increase (50%) that goes to the freeholder

Factors Affecting Lease Extension Costs

Several factors can significantly impact your lease extension premium:

Lease Length Remaining

  • Over 80 years: Lower premiums, no marriage value
  • Under 80 years: Higher premiums due to marriage value
  • Under 60 years: Substantially higher premiums
  • Under 30 years: Extremely high premiums

Ground Rent Terms

  • Peppercorn (nominal) rent: Minimal impact on premium
  • Fixed ground rent: Moderate impact depending on amount
  • Escalating ground rent: Significant impact, especially with doubling clauses

Property Value

Higher-value properties typically face higher extension costs, as the calculations are directly linked to property value.

Freeholder’s Approach

Some freeholders are more reasonable than others. Institutional freeholders often follow standard valuation methods, while individual freeholders may vary in their approach.

Beyond the Calculator: Professional Valuation

While our calculator provides a useful estimate, several factors may affect your actual premium:

  • Property-specific factors not captured in standard calculations
  • Local market conditions affecting property values
  • Freeholder’s valuation approach and negotiation stance
  • Tribunal precedents relevant to your property type and location

For this reason, we recommend obtaining a professional valuation from a specialist surveyor with experience in lease extensions in your area.

Legal Assistance With Lease Extensions

Connaught Law provides comprehensive support throughout the lease extension process:

Initial Assessment

  • Determining your eligibility for a statutory lease extension
  • Reviewing your existing lease for potential issues
  • Advising on the most suitable approach for your circumstances
  • Providing a realistic timeframe and cost estimate

Statutory Process Management

  • Preparing and serving the initial Section 42 notice
  • Checking and responding to the freeholder’s counter-notice
  • Coordinating with your valuer during negotiations
  • Representing you at the First-tier Tribunal if necessary
  • Completing the lease extension with the Land Registry

Premium Negotiation

Our solicitors work closely with experienced valuers to:

  • Challenge unreasonable demands from freeholders
  • Negotiate favorable terms within the statutory framework
  • Achieve the lowest possible premium
  • Ensure lease terms are fair and compliant with regulations

Frequently Asked Questions

Can you help reduce the premium quoted by my freeholder?

Yes. We specialize in negotiating lease extensions, aiming to reduce the premium payable to your landlord. Our solicitors work closely with professional surveyors, ensuring that you pay a fair market rate rather than an inflated one.

Do you represent clients at Leasehold Valuation Tribunals?

Yes. If an agreement cannot be reached amicably, Connaught Law is fully equipped to represent you at a First-tier Tribunal (Property Chamber). Our solicitors have a strong track record in achieving favorable outcomes in lease extension disputes.

How long does a lease extension typically take?

The statutory process typically takes 3-6 months if negotiations proceed smoothly. If the case goes to Tribunal, it may take 9-12 months. Informal agreements can sometimes be completed more quickly.

What are your fees for lease extension work?

Our pricing is transparent and competitive. While costs depend on the complexity of your case, we provide a clear fee structure at the outset. Your initial consultation is provided without obligation, giving you a clear understanding before committing.

Should I extend my lease now or wait until I sell?

Extending before selling is usually advantageous as:

  • You can market the property at a higher value
  • More buyers will be interested (especially those needing mortgages)
  • You avoid the 2-year ownership requirement being passed to the buyer
  • The cost will likely increase the longer you wait

Can my freeholder refuse to extend my lease?

Under the statutory route, freeholders cannot refuse a lease extension to qualifying leaseholders. They can only negotiate on the premium and challenge your eligibility if they believe you don’t qualify.

*Important Disclaimer

This calculator provides a general estimate only, based on industry standard calculations. The actual premium may vary significantly based on:

  • The specific terms of your existing lease
  • Your freeholder’s valuation methods
  • Local property market conditions
  • Recent tribunal decisions affecting valuation methods

The estimate should be used for initial budgeting purposes only. Before proceeding with a lease extension, we strongly recommend:

  1. Consulting with a specialist lease extension solicitor
  2. Obtaining a professional valuation from a surveyor experienced in lease extensions
  3. Assessing all potential costs beyond the premium (legal fees, valuation fees, Land Registry fees)

No action should be taken based solely on this calculator’s results without seeking professional advice tailored to your specific circumstances.

Next Steps: Get Professional Advice

For a personalized assessment of your lease extension options, contact our specialist lease extension team. We offer:

  • A free initial consultation to discuss your situation
  • Clear advice on the most cost-effective approach
  • A transparent fee structure with no hidden costs
  • Expert guidance throughout the process

Contact our lease extension specialists today on 0203 909 8399 or book a consultation online.

We’re here to help.
Book your consultation with Connaught Law today.
Get in Touch
Connaught Law
Latest Updates and Insights
Global network of diverse professionals connected by lines with central handshake representing how UK employers sponsor overseas workers through specialized visa routes

Sponsor Overseas Workers: Specialized Routes & Requirements Guide 2025

UK employers seeking to sponsor overseas workers must navigate an increasingly complex framework of specialized visa routes, each with distinct requirements, strategic considerations, and compliance obligations. Understanding these specialized pathways becomes essential as the post-Brexit immigration system continues to evolve and enforcement standards intensify throughout 2025. Table of Contents Overseas Worker Sponsorship Framework Specialized Route Categories Skilled Worker Route Requirements Intra-Company Transfer Arrangements Genuine Vacancy Requirements Temporary Worker Routes Licence Type Selection Strategy Eligibility Assessment Framework Application Process Optimization Compliance Considerations Strategic Planning Approaches Frequently Asked Questions Sponsor Overseas Workers: Specialized Routes & Requirements Guide 2025 The framework to sponsor overseas workers has undergone fundamental transformation following Brexit implementation, creating a points-based system that treats all international workers equally regardless of origin. This unified approach eliminates previous distinctions between EU and non-EU nationals while introducing specialized routes designed to address specific business needs and worker categories. The current system requires UK employers to demonstrate genuine business need, maintain robust compliance systems, and navigate increasingly complex route-specific requirements. Success in sponsoring overseas workers depends on understanding the strategic advantages of different routes, meeting evolving compliance standards, and implementing systematic approaches to ongoing obligations. Organizations seeking to sponsor overseas workers must evaluate

Sponsor licence compliance UK digital management system with checkmarks and documentation

Sponsor Licence Compliance UK: Enforcement Crackdown 2025

Sponsor Licence Compliance UK: Enforcement Crackdown 2025 The immigration landscape for UK employers has taken a dramatic turn. Fresh statistics from the Home Office paint a stark picture of heightened enforcement activity that should serve as an urgent wake-up call for businesses across all sectors. Understanding sponsor licence compliance UK requirements has never been more critical as regulatory tightening reaches unprecedented levels. The numbers tell a compelling story of regulatory transformation that extends far beyond statistical variance, signaling a fundamental shift in the Home Office’s enforcement strategy that will reshape how businesses approach international recruitment for years to come. The Compliance Crisis Emerges Between April 2024 and March 2025, sponsor licence suspensions skyrocketed to over 1,700 cases, representing a staggering increase that dwarfs the combined total of the preceding four years. This dramatic surge reflects more than heightened administrative activity; it demonstrates the Home Office’s commitment to rigorous enforcement standards that many employers have underestimated. The situation becomes even more concerning when examining licence revocations. With 1,560 sponsor licences formally terminated in the past year alone, enforcement levels now exceed the entire five-year period from 2019 to 2024, when only 1,530 revocations occurred. These figures represent careers disrupted, business plans

UK immigration reform employers strategic planning meeting collaboration

UK Immigration Reform Employers: White Paper Business Guide

UK Immigration Reform Employers: White Paper Business Guide The UK’s immigration system is undergoing its most significant restructuring in decades. The government’s comprehensive white paper, “Restoring Control Over the Immigration System,” delivers a clear message: the era of relatively accessible overseas recruitment is ending, replaced by a more selective, skills-focused approach that will reshape how businesses access international talent. To understand the complete policy framework behind these business-focused changes, our detailed analysis of the UK immigration white paper provides essential background context. For employers currently operating sponsorship programs, reviewing the official UK visa sponsorship guidance helps establish the baseline requirements that these reforms will modify. For employers, these changes represent both challenges and opportunities. While some sectors face severe restrictions on overseas recruitment, others may find enhanced pathways to global talent. Understanding these shifts is crucial for strategic workforce planning and long-term business sustainability. The Skills Revolution: Degree-Level Requirements The cornerstone of these UK immigration reform employers must understand involves fundamentally redefining what constitutes “skilled” work. The minimum qualification threshold for visa sponsorship will leap from RQF Level 3 (A-level equivalent) to RQF Level 6 (degree level), immediately excluding numerous roles that currently qualify for sponsorship. This shift particularly impacts

UK global talent visa attracts exceptional researchers to Cambridge University

UK Global Talent Visa: Britain’s Strategy to Win Top Minds

UK Global Talent Visa: Britain’s Strategy to Win Top Minds In an increasingly interconnected world, nations are locked in fierce competition for the most valuable resource of the 21st century: exceptional human talent. The UK has thrown down the gauntlet with its latest immigration white paper, outlining an ambitious strategy to position itself as the premier destination for the world’s brightest minds through enhanced UK global talent visa initiatives. But in a crowded field of competitors, will Britain’s plan be enough to secure victory in this global talent race? The Stakes Have Never Been Higher The battle for top-tier international talent has evolved from a policy preference into an economic imperative. Countries understand that attracting brilliant scientists, innovative entrepreneurs, and visionary researchers isn’t just about filling skills gaps — it’s about securing their future prosperity and global influence. The UK’s comprehensive strategy recognizes this reality, proposing sweeping enhancements to high-skilled immigration pathways that could reshape the country’s competitive position in the international talent market. Strategic Expansion of Elite Pathways At the core of Britain’s talent attraction offensive lies a systematic expansion of premium visa routes designed to capture exceptional individuals across multiple sectors. The Global Talent visa scheme will receive significant enhancement, targeting professionals

Student visa changes UK affecting Oxford University international students

Student Visa Changes UK: New Higher Education Rules 2025

Student Visa Changes UK: New Higher Education Rules 2025 The UK’s higher education sector is bracing for a seismic shift. The government’s latest immigration white paper introduces sweeping student visa changes UK regulations that could fundamentally alter how universities and colleges recruit and retain international students. These reforms go far beyond simple policy adjustments — they represent a coordinated effort to reduce net migration while placing unprecedented compliance burdens on educational institutions. For universities already navigating financial pressures, these changes could prove particularly challenging. Compliance Standards Reach New Heights The most immediate challenge facing educational sponsors involves dramatically tightened compliance metrics. The Basic Compliance Assessment (BCA), which determines whether institutions can continue sponsoring international students, will become significantly more demanding. Current requirements allow for up to 10% visa refusal rates, with minimum thresholds of 90% enrollment and 85% course completion. The proposed reforms raise these bars substantially: enrollment rates must reach 95%, completion rates must hit 90%, and visa refusal rates must drop to just 5%. These aren’t minor adjustments — they represent fundamental shifts in acceptable performance levels. Universities that previously met compliance standards may suddenly find themselves falling short, potentially losing their sponsor licence and ability to recruit

Palace of Westminster view symbolising legislative reforms in the UK Immigration White Paper 2025

UK Immigration White Paper 2025: Complete System Overhaul Guide

UK Immigration White Paper 2025: Complete System Overhaul Guide The UK government has delivered on its promise to fundamentally restructure the nation’s immigration framework. The comprehensive Immigration White Paper released in May 2025 represents more than policy refinement — it constitutes a complete reimagining of how Britain approaches international workforce planning, skills development, and border control. Under the banner of “restoring order, control and fairness,” these proposals signal a decisive shift away from the previous system’s perceived over-reliance on overseas workers toward a model prioritizing domestic talent development while maintaining selective access for exceptional international professionals. The Degree Standard: Elevating Skills Requirements The most transformative element of these reforms involves reinstating RQF Level 6 as the minimum qualification standard for skilled worker visas. This degree-level requirement represents a fundamental elevation in what the UK considers worthy of international recruitment support. This shift will immediately exclude numerous occupations currently eligible for sponsorship, particularly affecting sectors like hospitality, logistics, and construction where many roles fall below graduate-level classifications. The change reflects a strategic decision to reserve visa sponsorship for positions that genuinely require advanced qualifications and cannot be readily filled through domestic recruitment. Accompanying these qualification changes, salary thresholds will also rise

Connaught Law Limited
  • 4th Floor, Totara Park House, 34–36 Gray’s Inn Road, London WC1X 8HR
  • +44 (0) 203 909 8399
  • +44 7853 752762
  • [email protected]
Our Legal Services

We deliver exceptional legal representation across key practice areas, combining specialist expertise with client-focused service. Our solicitors provide strategic solutions tailored to your specific circumstances, ensuring optimal outcomes for individuals and businesses.

Real Estate

Expert guidance on property transactions, leasehold matters, and development projects. Our property solicitors navigate complex regulations and protect your interests throughout the conveyancing process.

Real Estate Law
Property Matters
Eviction Support
Extend Your Lease
Calculate Extension
Lender Services
Gap Financing
HNWI Property
SDLT Calculator
Tenant Purchase
Litigation

Strategic representation in commercial and civil disputes with a focus on achieving efficient resolutions. We handle everything from contractual conflicts to personal injury claims with precision and tactical insight.

Litigation Services
Business Disputes
Contract Claims
Challenge Decisions
Injury Claims
Medical Claims
Road Incidents
Workplace Illness
Immigration

Comprehensive visa and immigration services for individuals, families, and businesses. Our team navigates complex UK immigration pathways and provides effective solutions for challenging cases and appeals.

Immigration Services
Family Reunification
Corporate Mobility
Visit Britain
Study in UK
Permanent Status
EU Citizens
Rights Protection
Appeal Refusals
Review Decisions
Overturn Refusals
Court Challenges
Prevent Removal
Save Sponsorship
Family Law

Sensitive guidance through relationship transitions and family matters. We provide practical support for divorce, financial settlements, and child arrangements with discretion and emotional intelligence.

Family Law Services
Relationship End
Child Arrangements
Safety Protection
Partnership End
High-Value Divorce
Employment Law

Protecting workplace rights and resolving employment disputes for both employers and employees. Our specialists address unfair dismissal, discrimination, and contractual issues with balanced, practical advice.

Employment Law Services
Wrongful Termination
Workplace Equality
Forced Resignation
Exit Packages
Compensation Claims
Workplace Dignity
Tax Law

Strategic tax planning and compliance guidance for individuals and businesses. We help minimize liability while ensuring full compliance with HMRC requirements and handling investigations effectively.

Tax Law Services
Strategic Planning
Personal Taxation
Business Tax
Other Services

Specialized legal expertise across financial disputes, insurance claims, criminal defense, and citizenship matters. Our solicitors provide focused representation in these niche practice areas, delivering tailored solutions with the same exceptional standards of client service and technical excellence.

Banking Claims
Policy Claims
Criminal Defence
Citizenship Routes
Knowledge Base

Access our comprehensive legal resources crafted by experienced solicitors. Gain authoritative insights on key legal developments, practical guidance, and strategic approaches across our practice areas.

Property Law Insights
Immigration Guidance
Dispute Resolution Briefings
Family Legal Advice
Taxation Strategy Insights
Financial Claims Guidance
Property Relationship Advice
Defence Rights Resources
Post-EU Legal Analysis
All Legal Updates
Connaught Law
Social Rating
Based on 835 reviews
Google Rating
Based on 707 reviews
Facebook Rating
Based on 128 reviews
Trustpilot
Accreditations
The Law Society Accreditation Logo
Lexcel Accreditation Badge
Legal 500 Recognition Badge
Conveyancing Quality Scheme (CQS) Accreditation Logo
Our Sponsored
UK Visa Blog logo with yellow and white branding on a gray background
UK Visa Blog – Trusted UK visa news and expert guidance
Follow Us
Facebook Twitter Linkedin Instagram
  • Terms & Conditions
  • Refund Policy
  • Cookie Policy
  • Privacy Policy
  • Fees
  • Complaints
  • Legal Notice

© 2025 Connaughts Law. All Rights Reserved.
Connaughts is the trading name of Connaught Law Limited, a company registered in England and Wales (Company No. 10595036). This firm is regulated by the Solicitors Regulation Authority.

Contact Us