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If you own a flat with a share of freehold, extending your lease is usually more straightforward than dealing with an external landlord. However, it is not automatic and still requires careful legal steps.
We are experienced in acting for leaseholders in both small conversions and large blocks of flats. Our team regularly prepares multiple lease extensions at the same time, ensuring consistency across documents and avoiding future complications.
In most cases, no.
Where leaseholders also own the freehold, there is usually no need to serve statutory notices, instruct valuers, or pay a premium to a landlord.
Leaseholders can simply agree among themselves to extend their leases.
That said, the statutory procedure under the Leasehold Reform, Housing and Urban Development Act 1993 remains a safety net if agreement cannot be reached.
Generally, no premium is charged when extending a lease in a share of freehold situation, as all leaseholders benefit equally from maintaining long leases.
Most extensions are granted for a nominal “peppercorn” consideration.
Charging a premium would usually only arise if one leaseholder sought an extension but the others were not participating, or where the freeholders agree that costs should be recovered in that way.
For larger blocks, where many leaseholders participate together, we are often able to offer discounted rates based on numbers. This can make the process significantly more cost-effective while ensuring that all extensions are dealt with efficiently and on identical terms.
Whether you are one of a handful of owners in a converted house or part of a large block looking to coordinate multiple lease extensions, we can guide you through every step of the process - dealing with mortgage lenders (including obtaining lender consent and handling any associated fees) and completing Land Registry registration.
Even without a premium or statutory process, formal legal work must be carried out. This is because:
A deed of variation or a new lease needs to be properly drafted and executed.
The new lease must be registered at HM Land Registry.
Each freeholder must be a party to the document (or the freehold company, if relevant).
If the flat is mortgaged, the lender’s consent must be obtained and their charge re-registered against the new lease. Occasionally banks and building societies will charge an administration fee for providing consent and signing the documentation. This varies by lender but is a cost leaseholders should budget for.
Failing to complete these steps correctly can leave the extension ineffective or cause title defects.
All freeholders must consent and sign the deed.
Usually a straightforward agreement between neighbours.
Solicitors prepare the documents, obtain any lender consents, and register the lease extension.
In larger blocks, the freehold is often held by a company in which leaseholders hold shares. The company, as freeholder, must formally grant the extension. Some companies organise block-wide lease extensions on standard terms, encouraging all owners to participate at once.
Approval procedures depend on the company’s Articles of Association (board resolution, shareholder resolution, or both). A director (or authorised signatory) signs the deed on the company’s behalf.
Unlike small conversions, many large blocks are not owner-occupied. Flats may be owned by investors or absentee landlords. This creates practical challenges:
If only a minority of leaseholders (e.g. 30 out of 100) want extensions, the company can still grant them.
Provided the company’s Articles are complied with, there is no legal requirement for every shareholder to extend at the same time.
However, many companies prefer all leaseholders to extend together for consistency and fairness.
1. Agreement in principle – confirm with co-freeholders (or the company) that extensions will be granted without premium.
2. Check Articles of Association (company owned freeholds only) – identify what approvals are required.
3. Instruct solicitors – to draft the deed of variation or new lease.
4. Mortgagee consent – if your flat is mortgaged, the lender must consent and sign. Expect the lender to charge an administration fee.
5. Execution – signed by all freeholders (or company directors) and leaseholder(s).
6. Registration – completed at HM Land Registry, including re-registration of any mortgage.
No valuation or premium is usually needed.
Proper legal documentation and Land Registry registration are essential.
Mortgage lenders must consent, and may charge an administration fee.
Company-held freeholds require resolutions in line with the Articles.
In large blocks, not all owners need to participate, but uniformity is best practice.
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