Lease extension

Current legislation does not allow shared owners to use the formal route.

However, Home Group will consider an informal lease extension if:

• We are the freeholder of your home, or
• There are enough years remaining on our headlease

Shared owners should follow the same enquiry process by contacting homeownersupport@homegroup.org.uk.

You can:

• Check the original lease provided by your solicitor when you bought your home
• View your term on the Land Registry title
• Use the Leasehold Advisory Service’s check your lease length tool
• Email us to confirm the amount of time left on your term

Knowing your remaining years is essential for deciding whether to extend your lease.

You do not have to extend your lease before selling. However, if the remaining term is below 80 years, this may:

• Reduce the value of your home
• Limit the number of lenders willing to give buyers a mortgage
• Make the sale process slower

A solicitor or specialist surveyor can advise based on your lease length and future plans.

In May 2024, the King approved a bill that aims to improve the rights of residential leaseholders. It's called the Leasehold and Freehold Reform Act (LFRA). One major change increases standard lease extension terms to 990 years for both flats and houses.

While most parts of the Act are not yet in force, we are embracing early adoption of this part of LFRA. This means we can offer you the option to extend your lease up to a maximum term of 990 years through the informal route.

What this means:

• If we are the freeholder or have enough headlease years remaining, you can request a lease extension of up to 990 years
• If we are not the freeholder, you will need to contact the freeholder directly

The cost of extending a lease is made up of:

The premium

This is the main cost the leaseholder must pay to the landlord for extending the lease. It is calculated based on factors such as property value, lease length, and ground rent.

You can use the lease extension calculator from the Leasehold Advisory Service to get an estimate. Please note it does not reflect local market conditions.

In an informal extension, a government appointed valuation specialist will calculate the premium.

For a formal extension, you must arrange your own specialist valuation before serving the section 42 notice.

You are responsible for valuation fees in both cases.

Other fees

• Your own legal fees (including the land registry fee for registering the lease extension)
• Home Group’s legal fees (currently £540 including VAT)
• A £100 fee if you take the 990 year term we are offering early under the informal process (before the legislation comes in)

We cannot give you advice on whether to extend your lease now or to wait. It will depend on circumstances such as your lease length. We recommend you seek specialist advice.

Currently, the main live change is that leaseholders can extend the lease as soon as they buy a property. 

At the moment, it is not clear how 990 year lease extensions will be valued. We don't know if it will be cheaper for all leaseholders to extend their lease in every circumstance.