Should I extend the lease on a buy-to-let flat before selling?
A lease extension adds years to the lease of a flat. Value and mortgageability fall as a lease shortens, especially below 80 years, when marriage value has traditionally increased the premium. Leaseholders can extend through the statutory route or by agreement, and the Leasehold and Freehold Reform Act 2024 is changing the rules.
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Lease length and its effect
| Years left | Typical effect |
|---|---|
| Over 90 | Little effect on value or lending |
| 80 to 90 | Some buyers ask about extension |
| Under 80 | Premium has traditionally included marriage value |
| Under 70 | Many lenders restrict or refuse lending |
| Under 60 | Mainly cash buyers; large discount |
Why lease length matters
A lease is a wasting asset. As the term shortens, the flat is worth less and lenders become reluctant. Buy-to-let flats are often investors' oldest leases, and a flat that sold easily at 85 years can be hard to sell at 65 without an extension or a cash buyer.
How to extend
- Statutory route: serve a formal notice on the freeholder; the extension and premium follow set rules, with disputes decided by the First-tier Tribunal.
- Informal route: negotiate directly with the freeholder; quicker but terms can be less favourable, such as ground rent reviews.
- Notice before sale: the statutory notice can usually be assigned to the buyer with the flat.
The 2024 reforms
The Leasehold and Freehold Reform Act 2024 removed the two-year ownership requirement before extending, which took effect on 31 January 2025. It also provides for 990-year extensions at a peppercorn ground rent, the removal of marriage value and changes to valuation, but several of these depend on further regulations. Check the current position with a solicitor or valuer before serving notice. See freehold and leasehold.
Extend or sell as is?
Extending before sale costs the premium and fees but usually lifts value by more, especially under 80 years. Serving notice and assigning it to the buyer is a middle route. Investor buyers of a portfolio often price short leases in, which can be simpler than extending every flat first.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
A lease extension adds years to the lease of a flat. Value and mortgageability fall as a lease shortens, especially below 80 years, when marriage value has traditionally increased the premium. Leaseholders can extend through the statutory route or by agreement, and the Leasehold and Freehold Reform Act 2024 is changing the rules.
Often several months, longer if the premium goes to the tribunal.
Under current rules the leaseholder usually pays the freeholder's reasonable legal and valuation costs. The 2024 Act provides for this to change.
Yes. Company leaseholders have the same statutory right as individuals.
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