How Much Does a Lease Extension Cost in 2025?

Why Lease Extensions Matter in 2025

Leasehold properties lose value over time. When your lease falls below 80 years, extending it becomes more expensive. This is due to a factor called marriage value. But, the Leasehold and Freehold Reform Act 2024 has made changes. These changes might lower costs for many leaseholders this year.

Extending your lease is vital, whether you live in a new development in East London or a Victorian conversion in North London. It helps:

• Maintain or increase your property value

• Make your property easier to sell or remortgage

• Avoid high extension premiums in the future

 What Does a Lease Extension Cost in 2025?

The cost of a lease extension includes two main parts:

1. The Premium (Cost of the Lease Extension Itself)

This is what you pay the freeholder to extend your lease, usually by 90 years. It depends on several factors:

• The current length of your lease

• The value of your property

• Your ground rent

• Marriage value (if under 80 years remaining)

Here’s what you can expect in 2025:

 In central and inner London—blocks under block management firm London—costs are higher due to property values.

2. Professional Fees

Along with the premium, you'll need to pay for professional services. These include:

 If the lease extension is over £125,000, you might also have to pay Stamp Duty Land Tax.

What’s Changed: 2024–2025 Leasehold Reform

The Leasehold and Freehold Reform Act 2024 has made big changes to leasehold law. These changes are affecting costs in 2025:

 Two-Year Rule Removed

You can now apply for a lease extension as soon as you buy your flat—no need to wait two years.

Longer Lease Terms Expected

Lease extensions are expected to shift from 90 years to 990 years. This change is pending final implementation.

Marriage Value Abolishment (Coming Soon)

Marriage value—a cost applied when leases are under 80 years—is being phased out. It may not fully disappear until late 2025 or early 2026. Leaseholders with short leases should speak to a professional before deciding whether to wait.

 The Role of Block Management in Lease Extensions

If you live in a property managed by a block management firm in London, the management setup can affect your lease extension in several ways:

Accurate Financial Records

Professional block managers ensure your service charges and ground rent accounts are accurate—essential for valuations and negotiations.

Communication With Freeholders

Lease extensions often require cooperation between leaseholders, managing agents, and freeholders. A reliable block management East London or North London team makes this process smoother.

Transparent Practices

Good block management ensures all relevant documents (insurance, accounts, maintenance history) are available—minimising disputes during lease negotiations.

At Taylor Chartered Surveyors, we frequently work alongside block management firms in London, helping leaseholders navigate extensions while ensuring management obligations are fully considered.

 East & North London Focus

In rapidly developing areas like East London (Stratford, Hackney, Bow) and North London (Islington, Highbury, Camden), lease extension premiums are rising due to increased property values.

Whether you live in a newly built flat in Shoreditch or a listed building in Camden, block management East London and block management North London services play a key role in handling your lease extension efficiently.

How Taylor Chartered Surveyors Can Help

At Taylor Chartered Surveyors, we offer a complete lease extension service, including:

• RICS-compliant valuations to calculate fair premiums

• Negotiation with freeholders and their surveyors

• Guidance on whether to act now or wait for further legal reforms

• Support for both individual leaseholders and Residents’ Management Companies (RMCs)

We also offer tailored advice to properties under professional block management London companies—ensuring a smooth, transparent process from start to finish.

Step-by-Step Lease Extension Process

Here’s what the process typically looks like in 2025:

1. Valuation: Instruct a surveyor (like us) to calculate your premium

2. Legal Advice: Hire a solicitor experienced in leasehold law

3. Serve Notice: Formally notify the freeholder (if using statutory route)

4. Negotiation: Freeholder appoints their own surveyor; prices are negotiated

5. Agreement & Completion: Once agreed, the lease is extended and registered with HM Land Registry

6. Management Updates: Your block management firm updates lease records and service charge details

FAQs

How long does the process take?

Typically, 3 to 6 months—longer if negotiations become contentious.

Should I wait for marriage value to be abolished?

If your lease is under 80 years, waiting might save you money. But, reforms could take a while. It's wise to talk to a professional to see what's best for you.

Is it cheaper to negotiate informally?

Informal talks might seem cheaper, but they're riskier. You could face higher ground rents and unclear terms. We suggest going through the official process for better protection.

Final Thoughts

Lease extensions in 2025 are a big step, but the changes make it easier. The process is now more straightforward than before.

If you're looking at a lease extension in East London, North London, or the capital, know your rights. Get a fair valuation and work with experts who know the local market and your building.

At Taylor Chartered Surveyors, we offer top-notch leasehold valuation and deep knowledge of block management London. We help homeowners, investors, and RMC directors navigate the process with confidence.