Blog>Cost Guides>Lease Extension: Cost breakdown 2025
Last updated: 4 July 2025
Lease Extension: Cost breakdown 2025
If you own a flat, the chances are that it’s a leasehold – with more than 4 million leasehold flats in England and Wales alone, it’s the most common type of flat ownership. As the number of years left on your lease starts to decrease, you’ll need to start thinking about a lease extension.
Fast Facts
The average cost for a lease extension in the UK is around £5,000
This cost is based on adding 90 years to the lease of a flat worth £200,000
For accurate prices, get quotes from at least three leasehold solicitors who cover your area
How much does it cost to extend a lease in the UK?
In the UK, the average cost of lease extension adding 90 years to a property worth £200,000 is currently in the region of £5,000 - £24,000.
This estimate reflects the typical statutory lease extension cost, which applies when you extend your lease under the Leasehold Reform Act.
However, calculating the total cost varies depending on the value of your property and the number of years currently left on the existing lease.
Below are some average estimated costs of extending the lease in the UK:
| Years remaining on the lease | Typical cost of extending the lease on a £200,000 flat by 90 years |
|---|---|
| 95 years | £5,000 |
| 85 years | £6,000 |
| 79 years | £8,500 |
| 70 years | £14,000 |
| 60 years | £24,000 |
| Last updated: May 2024 Our costs are ballpark averages - get a local tradesperson to quote now | |
For accurate information and costs for your property, check out our landlord hub or discover more with our NRLA service partnership.
Legal fees for a lease extension cost UK
Altogether, legal fees will typically come to around £1,600 to £2,100.
Lease extension valuation cost
To get a more accurate lease extension cost, you’ll need a surveyor to come and give you a figure.
The cost of the lease extension valuation itself is typically from £400 to £900, depending on your property's value.
Lease extension valuation: Job estimator tool
Use our job estimator tool below to find out the cost of hiring a chartered surveyor for a lease extension valuation.
Need help working out cost? Our job estimate tool calculates the costs for you.
Factors affecting the cost of a lease extension
The cost to extend a lease in the UK depends on several factors, including:
The current value of your flat
How many years are left on your existing lease
How many years you’re adding (typically 90)
The outcome of your negotiations
The most important factor is how many years remain on your existing lease.
In short, the fewer years you have left, the more it will cost to extend the lease.
The biggest jump in cost happens when you let your lease length drop below 80 years.
At this point on, you have to pay 50% of what’s known as the ‘marriage value’ – this is the amount of additional value that the lease extension adds to your property.
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Hidden costs to watch out for
On top of the cost of the lease extension itself, you’ll have to factor in various other costs, including:
The lease extension valuation cost
Legal fees
Stamp duty (if the extension price is more than £125,000)
Legal fees include not only the cost of your leasehold extension solicitors, but also the freeholder’s reasonable costs.
However, it’s important to note that you shouldn’t be paying their legal fees for negotiating the price of the extension.
How to pay for the cost of a lease extension
Mortgage broker London & Country says that most lenders will willingly extend a mortgage to pay for a lease extension – as long as you have enough room on the mortgage to cover it and you can meet the repayments.
It’s also worth noting that a lease extension can add to the value of a property significantly. When there are 85 years remaining on a lease, an extension will typically only add around £5,000 of value to a £200,000 flat. Meanwhile, at 60 years remaining, a lease extension is likely to add around £38,000!
Lease extensions explained
If you own a flat, chances are that it’s a leasehold – the most common type of flat ownership, with over 4 million leasehold flats in England and Wales alone.
Owning a leasehold flat means you own the property for a set number of years, but not the building it sits in. As those years pass by, you’ll need to consider a lease extension. Once your lease drops below 70 years, mortgage rates typically increase. At 60 years, remortgaging becomes extremely difficult.
As a result, the value of your flat will decrease, and it becomes harder to sell. Thankfully, the 1993 Leasehold Reform Act means most leasehold flat owners have a legal right to add 90 years to their lease at a fair market price.
Statutory lease extension cost vs informal lease extension
There are two ways to extend your lease: statutory and informal.
A statutory lease extension gives you a legal right to add 90 years and reduce ground rent to zero, with costs based on a standard formula
An informal lease extension is negotiated directly with your freeholder and may offer flexibility, but it comes with fewer protections
Lease extension cost checklist
Start thinking about a leasehold extension when your lease drops to around 83 years – waiting too long can make the process more expensive
A standard lease extension usually adds 90 years to your current term
Don’t forget to budget for legal fees and a professional valuation
Stamp duty generally won’t apply unless the lease extension cost is more than £125,000 – which is rare, but possible with high-value properties
Cost of lease extension: FAQs
How much does it cost to renew a lease in the UK?
The average cost to renew a lease in the UK is in the region of £5,000 - £24,000.
Is it expensive to extend a leasehold?
Yes, it can be expensive to extend a leashold – especially if your lease has less than 80 years remaining. Costs include the premium (the price paid to the freeholder), valuation fees, legal fees, and Land Registry fees. The shorter the lease, the more expensive it usually costs to extend.
Is 125 years a good lease?
Yes, a 125-year lease is generally considered to be an excellent length of lease. Most new leaseholds are granted with 99 to 125 years, and anything over 90 years is typically not an issue when it comes to selling or mortgage lending.
What happens when a 99 year lease expires in the UK?
When a lease reaches zero years, ownership of the property reverts back to the freeholder. That means you no longer have a legal right to occupy the property. However, in practice, most leaseholders extend or negotiate the lease well before it expires to avoid losing rights to the property.
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