Leasehold Extension Calculator 2026
Calculate your estimated statutory 990-year lease extension cost, ground rent buyout, and see your exact financial savings from the abolition of marriage value.
Statutory Valuation Matrix (Current vs 2026 Reform)
Approximate unencumbered open-market flat value.
⚠️ Marriage Value Warning: Under pre-2024 law, leases below 80 years trigger a 50% marriage value penalty.
£12,795
+990 Years (Peppercorn £0)
£21,570
Includes £8,775 Marriage Value£8,775
50% landlord penalty eliminatedStatutory Protection: Under the Leasehold and Freehold Reform Act, your new lease will be extended by 990 years with ground rent reduced to an absolute peppercorn (£0/year), permanently eliminating onerous doubling ground rents.
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The 4 Core Statutory Pillars of the Leasehold Reform Act 2024/2026
Replaces the former 90-year statutory extension for flats. Owners receive a virtually permanent 990-year lease, permanently ending the recurring 80-year lease trap for future generations.
Under the 1993 Act, freeholders extracted a 50% share of the property value increase on leases under 80 years. The 2024 legislation abolishes this penalty entirely.
You no longer need to own a leasehold home for two consecutive years before serving a statutory Section 42 Notice. Buyers can initiate a statutory extension immediately on day one.
The general statutory requirement forcing leaseholders to pay the landlord's valuation and solicitor fees is repealed, saving an estimated £1,500 to £3,500 in conveyancing disbursements.
Old Law (1993 Act) vs Reformed Law (2024/2026 Act) Side-by-Side
| Statutory Provision | Old Law (1993 Act Rules) | Reformed Law (2024/2026 Act) |
|---|---|---|
| Statutory Extension Term | +90 years for flats (+50 years for houses) | +990 years (Flats & Houses) |
| Ground Rent Following Extension | Peppercorn (£0) | Peppercorn (£0) |
| Marriage Value Liability (<80 Yrs) | 50% of marriage value paid to landlord | Completely Abolished (£0) |
| Ownership Waiting Period | Must own for 2 continuous years | Immediate right from Day 1 of purchase |
| Landlord's Legal/Valuation Fees | Leaseholder strictly liable to pay | Each party bears own costs |
| Mixed-Use Commercial Limit | 25% non-residential floor area limit | Increased to 50% non-residential |
The 5-Step Statutory Lease Extension Protocol (Section 42 Route)
RICS Valuation
Instruct an independent chartered surveyor to inspect the property and determine realistic statutory premium parameters.
Serve Section 42 Notice
Your solicitor drafts and serves the statutory Tenant's Notice (Section 42) stating your proposed opening premium.
Section 45 Counter-Notice
The freeholder has exactly 2 months to respond via a Section 45 Counter-Notice accepting or disputing the proposed price.
Surveyor Negotiation
Both surveyors have 6 months to negotiate and agree on the final figure. Over 95% of statutory cases settle amicably.
Deed of Surrender & Regrant
Your conveyancer drafts the 990-year lease deed and registers the title update directly with HM Land Registry.
Frequently Asked Questions — Leasehold Extension & Reform
Statutory legal questions on 990-year leases, marriage value abolition, and Section 42 notices.
The landmark Leasehold and Freehold Reform Act 2024 introduces statutory rights that fundamentally reduce costs for leaseholders: (1) Standard statutory lease extensions increase from 90 years (for flats) or 50 years (for houses) to 990 years, (2) Ground rent is capped at a financial peppercorn (£0), (3) The mandatory 2-year ownership rule is abolished, allowing buyers to extend immediately upon purchase, and (4) The 80-year 'marriage value' calculation is abolished, removing the 50% windfall payment previously demanded by freeholders when leases dropped below 80 years unexpired.
Statutory Diligence Guides & Legal FAQs
Official regulatory answers referencing Acts of Parliament, RICS guidance, and statutory planning orders.
How Do You Calculate a Statutory Lease Extension in the UK?
A statutory lease extension premium in England and Wales is calculated using a complex valuation formula that compensates the freeholder for three distinct financial losses: (1) Loss of Ground Rent (the present capitalised value of the remaining ground rent payments up to the end of the existing lease term); (2) Deferment of Reversion (the present discounted value of postponing the day the freeholder gets full possession of the flat); and (3) Marriage Value (the additional capital uplift created when the short lease is merged with the freehold). Under the historic 1993 Act, marriage value only applies when the remaining lease term falls below 80 years and is split 50/50 between flat owner and freeholder.
What Are the Key Changes to Leasehold Law in 2026 in the UK?
The key changes to UK leasehold law in 2026 stem from the staged implementation of the Leasehold and Freehold Reform Act 2024 and supplementary 2026 legislation. The five major statutory changes are: (1) Increasing the standard statutory lease extension term from 90 years to 990 years with a peppercorn (zero) ground rent; (2) The complete abolition of 'marriage value' in the valuation formula, saving owners of sub-80-year leases tens of thousands of pounds; (3) Scrapping the mandatory 2-year ownership rule, allowing buyers to extend immediately upon purchase; (4) Banning the sale of new-build leasehold houses; and (5) Removing the requirement for leaseholders to pay the freeholder's legal and valuation costs.
How Much Does It Cost to Extend a Lease to 990 or 999 Years in the UK?
The cost to extend a lease to 990 years in the UK typically ranges between £3,000 and £9,000 for flats with over 85 years remaining, rising to £10,000 to £25,000+ for flats with shorter leases (between 70 and 80 years). The total cost comprises two elements: (1) The statutory premium paid to the freeholder (governed by your flat's open market value, remaining lease years, and ground rent); and (2) Professional fees (surveyor valuation and conveyancing solicitor fees, usually £1,500 to £3,000). Because 2026 reforms abolished marriage value, premiums for sub-80-year leases are up to 40% to 60% cheaper than under the old 90-year system.
Is There an Online Calculator to Estimate the Cost of a Lease Extension?
Yes, you can estimate the cost of extending your lease online using our free Leasehold Extension Premium Calculator 2026. By inputting your flat's estimated open-market value, remaining lease term in years, current annual ground rent, and ground rent review terms, our algorithm models the statutory capitalisation rate, the Sportelli 5.0% deferment rate, and the 2026 abolition of marriage value. This provides a realistic upper and lower valuation bracket to help you plan finances and negotiate with your freeholder before incurring surveyor or legal fees.
How Does a Lease Extension Calculator Work Without Marriage Value in 2026?
A lease extension calculator without marriage value removes the historic requirement that flat owners with leases under 80 years must pay 50% of the property's market uplift to the freeholder. Under Section 23 of the Leasehold and Freehold Reform Act 2024, the premium is calculated solely on: (1) Capitalised loss of ground rent, and (2) The discounted deferment value of the reversion. By excluding marriage value, the statutory premium for a 72-year lease on a £350,000 flat drops from approximately £28,000 down to roughly £13,000—a direct cash saving of over £15,000 for the leaseholder.
How Much Does It Cost to Extend a Lease by 90 Years Under the 1993 Act?
Under the historic Section 42 procedure of the 1993 Act, extending a residential lease by 90 years costs between £4,000 and £9,000 for leases over 85 years, rising steeply to £20,000 to £40,000+ for leases under 80 years due to mandatory marriage value. While extending by 90 years successfully reduces ground rent to zero (a peppercorn) and adds 90 years to your remaining balance, all new statutory lease extension applications served in 2026 now grant a 990-year term under the 2024 Act, giving flat owners virtually permanent ownership for a similar or lower premium.
Do You Pay Stamp Duty (SDLT) on a Lease Extension in the UK?
Yes, Stamp Duty Land Tax (SDLT) can be payable on a lease extension premium in England, but the vast majority of residential leaseholders pay £0 in tax. Because standard residential SDLT rules apply, if the lease extension premium is under the £250,000 threshold and the flat is your only residential home, zero Stamp Duty is due. However, if the flat is an additional property (such as a buy-to-let or second home) and the lease extension premium exceeds £40,000, the 3% Higher Rates for Additional Dwellings (HRAD) surcharge applies to the premium paid to the freeholder.
Does GOV.UK Provide a Free Lease Extension Calculator?
GOV.UK does not host an interactive lease extension calculator directly on its main gov.uk website. Instead, the UK Government funds The Leasehold Advisory Service (LEASE)—an official executive non-departmental public body sponsored by the Ministry of Housing, Communities & Local Government (MHCLG)—which provides statutory guidance and an online estimation tool. Homeowners can also use independent online calculators, such as our Leasehold Extension Premium Calculator 2026, which models the updated Leasehold and Freehold Reform Act 2024 schedules with 990-year terms and zero marriage value.