Lease extension costs: what you pay and who pays what

Extending a lease costs more than the premium you pay the landlord. There are also statutory costs, your own professional fees, and the landlord's reasonable costs. This guide is dated and limited to what was verified against legislation.gov.uk, GOV.UK and the official Leasehold Advisory Service guidance on 11 August 2026.

The premium is not a published price

The premium is set by a valuation of your specific flat or house under the statutory formula - it is not a published tariff. For a flat, the premium compensates the landlord for the loss of ground rent over the remaining term, the delay in getting back possession (the reversion) from adding 90 years, half of any marriage value if the lease has less than 80 years remaining, and any other losses the landlord can show. The figure is an estimate within a range, not a fixed price, and negotiation between the two valuers is expected.

Marriage value is the increase in the flat's value that results from extending the lease; if your lease has 80 years or less remaining at the date you serve your section 42 notice, you pay half of it. Above 80 years, no marriage value is payable - this is the "80-year threshold". Relativity - how much a short lease is worth compared with a long lease or freehold value - falls more steeply below 80 years, which is why the threshold matters so much.

Statutory costs under current law

Under section 60 of the Leasehold Reform, Housing and Urban Development Act 1993 (the current law for flats), the leaseholder pays the landlord's "reasonable costs of and incidental to" the claim: investigating the right to a new lease, obtaining a valuation to fix the premium, and granting the new lease. The leaseholder does not pay the landlord's costs in tribunal proceedings.

In practice, beyond the premium you will normally pay: your own valuer's and solicitor's fees; the landlord's reasonable legal and valuation costs (not their tribunal costs); disbursements such as Land Registry fees, searches or registration costs; and tribunal or court fees if the claim is determined formally.

Professional fees: the honest answer on totals

What the official guidance does say: solicitors must publish information about their prices and services on their website, and costs vary depending on the solicitor you choose. The practical step is to ask each adviser for a fixed fee or written quote before instructing them, so the total is known before you commit.

What the government consultation proposes

On 15 July 2026 the Ministry of Housing, Communities and Local Government opened a consultation (closing 23 September 2026) on leasehold enfranchisement process costs. It proposes, for low-value or failed-claim exceptions under the future reforms: a £1,500 prescribed amount for a landlord's legal costs in a lease extension (excluding VAT and disbursements, "typically" £1,800-£2,000 once added), rising to £2,000 if the landlord also instructed a valuer. These are consultation proposals for the future regime, not current law - and the government is still gathering evidence on what process costs are currently paid.

When the rules change: LFRA 2024 status

The Leasehold and Freehold Reform Act 2024 will change lease extensions, but most of it is not yet in force. As of 11 August 2026: the 990-year extension, the new valuation method, removal of marriage value, and the costs reform (each party bearing its own costs) are all prospective. Current law remains 90 years for a flat and 50 years for a house. The only substantive commencement so far is the removal of the 2-year ownership qualifying period, in force since 31 January 2025.

Where to get help

The government-funded advice service is the Leasehold Advisory Service (LEASE), which styles itself "Lease advice" and is funded by MHCLG; GOV.UK links to its lease extension calculator as a guide to the costs of extending a flat's lease. A qualified valuer (chartered surveyor) specialising in lease extension work is findable through the RICS website, and you can take the formal route yourself or via a specialist solicitor.

Key facts

Source: legislation.gov.uk - LRHUDA 1993 s.60

Source: LEASE - Lease extension valuation (updated 16 Dec 2025)

Source: LEASE - Additional costs to plan for

Source: legislation.gov.uk - LFRA 2024 s.33 and s.39 (prospective)

Source: GOV.UK - Leasehold enfranchisement process costs consultation (15 Jul 2026)

Source: GOV.UK - Leasehold property: extending, changing or ending a lease