Lease Extension
Estimate the premium for a statutory lease extension.
Introduction
Who this is for: Leaseholders considering a statutory extension under the Leasehold Reform, Housing and Urban Development Act 1993.
Why it matters: A statutory extension adds 90 years and reduces ground rent to a peppercorn. The premium combines the ground rent the freeholder loses, the deferred reversion, and — below 80 years — marriage value. Costs rise steeply as the lease shortens.
Typical scenario: A leaseholder with 74 years remaining and £250 ground rent estimating the premium before serving notice.
- Waiting until the lease drops below 80 years, which adds marriage value to the premium.
- Using the wrong deferment rate — the Sportelli case established 5% for flats, but it is argued in individual cases.
- Forgetting the leaseholder pays the freeholder’s reasonable professional costs as well as their own.
Inputs
Lease
years
Valuation Rates
Costs
Analysis
With 74 years unexpired, the estimated premium is £28,595 — £4,111 for the ground rent, the reversion element, and £15,405 of marriage value. With fees, total cost is around £33,095 against a value uplift of £44,000 — a net benefit of £10,905. Treat this as a screening estimate only.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Live Results
Estimated Premium
£28,595
Total Cost incl. Fees
£33,095
Marriage Value Element
£15,405
Value Uplift
£44,000