Think You Don’t Need to Extend Your Lease? Here’s Why You Might Be Wrong

Owning a share of the freehold gives you greater control over your property—but it doesn’t mean you can ignore your lease. Many homeowners mistakenly assume that holding a stake in the freehold company negates the need for a lease extension. However, the reality is that lenders, buyers, and future-proofing concerns make extending your lease a crucial step.

What Is a Lease Extension, and Why Does It Matter? 

When you buy a flat or apartment (and occasionally other property types), you typically own a leasehold title rather than the building itself. This lease grants you the right to live in the property for a set number of years. If the lease length drops too low, it can become a serious issue, reducing your property’s value and making it difficult to secure a mortgage or sell. 

Key Reasons to Extend Your Lease 

Even if you own a share of the freehold, extending your lease offers multiple benefits: 

✅ Protect Your Property’s Value 

A shorter lease means a lower property valuation. Extending it early preserves your investment and marketability. 

✅ Ensure Mortgage Eligibility 

Most lenders require at least 85 years remaining on a lease before approving a mortgage. If your lease falls below this threshold, refinancing or selling to a buyer who needs a mortgage becomes difficult. 

✅ No Upfront Premium—Just Legal Costs 

As a share of freehold owner, you can extend your lease without paying a premium, only covering legal fees. This is a cost-effective way to safeguard your property. 

✅ Secure a 999-Year Lease 

You can extend your lease once and for all to 999 years, eliminating the need for future extensions and ensuring long-term stability. 

✅ Eliminate Ground Rent 

Extending your lease means zero ground rent, which makes your property more attractive to buyers. 

✅ Update and Improve Lease Terms 

Old leases often contain outdated clauses that no longer reflect current property laws or lender requirements. A lease extension provides an opportunity to modernise and future-proof your lease. 

Expert Insight: Why Acting Now is Essential 

“A lease extension isn’t just a legal process—it’s a smart investment in your property’s future. Many homeowners don’t realise that without a long lease, their options to sell or refinance become extremely limited. Acting early ensures peace of mind and financial security.” 

— Sarah Gillbe, Senior Residential Property Consultant 

Debunking Common Lease Extension Myths 

❌ Myth: “I don’t need to extend my lease because I own part of the freehold.” 

✅ Fact: Your lease proves ownership, not the freehold share. Buyers and lenders look at the lease, not the freehold company structure. 

❌ Myth: “I can extend my lease at any time.” 

✅ Fact: The longer you wait, the more challenging and expensive it may become. Acting early helps avoid complications. 

❌ Myth: “Extending my lease is costly and unnecessary.” 

✅ Fact: If you own a share of the freehold, you don’t pay an upfront premium—only legal fees. This is a small price to pay to secure your property’s value. 

What’s the Process for Extending Your Lease? 

The process is straightforward, especially if you and your fellow freehold shareholders agree: 

1️ Consult a property law expert to assess your lease’s current terms. 

2️ Agree on the lease extension terms with the freehold company. 

3️ Update and modernise the lease if needed. 

4️ Register the extended lease with the Land Registry. 

Take Action Today 

Extending your lease isn’t just a legal formality—it’s a smart investment in your property’s future. Whether you plan to sell, remortgage, or simply safeguard your home’s value, acting now can save you time, money, and stress down the line. 

Need expert advice on lease extensions? Contact Setfords today.