Lease Extensions & Freehold Acquisition (Enfranchisement)

Your Rights, Your Options, Expert Guidance

Why Lease Extensions and Freehold Acquisition Matter

Many leaseholders reach a point where their lease is becoming too short, or where escalating ground rent and service charges make ownership burdensome. Others seek the security of owning the freehold or controlling management of their building. Without expert legal guidance, the risks include:

  • paying an excessive premium
  • being unable to negotiate or challenge unfair valuation terms
  • missing statutory deadlines or formal notice requirements
  • bearing disproportionate costs or losing rights due to mis-steps
  • becoming trapped in a cycle of repeated lease extensions

At Jonathan Lea Network, we guide you through the complex legal rules, negotiate for the best terms, and pursue statutory or Tribunal routes where needed. We aim for cost-effective, robust outcomes rather than protracted battles.

What Do “Lease Extension” and “Freehold Acquisition / Enfranchisement” Mean?

Lease Extension: A lease extension is the legal right of a leaseholder to extend the term of the lease. In effect, you push the expiry far into the future (often decades or even centuries), typically paying a premium to the freeholder to reflect the value transferred. After extension, ground rent may reduce or be replaced by a “peppercorn” (zero monetary) rent.

Freehold Acquisition / Enfranchisement: Enfranchisement, or collective freehold acquisition, allows qualifying leaseholders in a building (often flats) to purchase the freehold interest from the current freeholder(s). You then hold the freehold jointly (often through a company) or individually. This gives you direct control of maintenance, service charges, insurance and avoids recurring lease renewal costs.

Because many of the rules differ depending on whether your property is a house or a flat, and whether you act individually or collectively, bespoke legal analysis is crucial.

What Has Changed Under the 2024 Leasehold Reform?

The Leasehold and Freehold Reform Act 2024 (LFRA 2024) represents a transformative shift in leasehold rights, though not all provisions are yet in force. Below are key reforms (some in force, some pending) that affect lease extensions and enfranchisement:

Reform What is Changing Practical Implications
Longer Standard Lease Terms For new statutory lease extensions, the standard term is increased to 990 years (on top of the existing unexpired term).  This gives you a much longer lease with minimal risk of further shortening, reducing the need to repeat extensions.
Abolition / Removal of Marriage Value The concept of “marriage value” (the uplift in value shared with the landlord) is being eliminated – this applies to most residential leasehold extension and enfranchisement claims – but there may be exceptions or complex transitional cases. We provide advice tailored to your term length, claim date, and statutory status. Your premium may be significantly lower, particularly if your lease is already short.
Ground Rent to Peppercorn New leases or extensions will require ground rent to be reduced to a peppercorn (i.e. effectively zero) rent.  You no longer pay meaningful ground rent after extension, which reduces ongoing cost and improves resale prospects.
No Two-Year Ownership Requirement The old rule that you had to own the lease for two years before extending or enfranchising has been abolished.  You may serve extension or freehold purchase notices immediately upon acquiring the property.
Limits on Landlord Costs Recovery The new regime provides strict caps on administrative and legal fees recoverable by landlords. You’ll know in advance what fees, if any, will apply—and we contest any excessive charges on your behalf. You are less likely to be burdened by inflated legal or administrative costs demanded by the freeholder.
Wider Eligibility & Thresholds The proportion of non-residential space in the building allowed for enfranchisement or extension claims is increased (from 25% to 50%).  More buildings become eligible for collective freehold acquisition or extension rights.

However, many of these reforms require secondary legislation and may not yet be fully in force. Until then, existing statutory rules (from the Leasehold Reform Acts, Housing Acts, etc.) continue to apply. 

At Jonathan Lea Network, we will assess precisely which rights apply in your case (old regime, new regime, or hybrid) and advise on the optimal strategy in the current legal landscape.

Who Qualifies for Lease Extensions or Enfranchisement?

Qualification depends on several criteria, which vary for houses vs flats, and for individual vs collective claims. It’s critically important to establish the right statutory regime before serving a notice or negotiating terms. Some reform measures have already taken effect, while others depend on secondary legislation or future commencement dates. We will always conduct a tailored check and advise on the safest route for your situation. Here are some basic rules:

For a Lease Extension (Individual)

You may qualify if:

  • You are a long leaseholder (e.g. your lease was granted for 21 years or more)
  • Your lease meets minimum duration or value thresholds under the statutory regime
  • Under the new reforms, ownership time conditions may no longer apply
  • You are not disqualified by exclusion criteria (some leases, commercial uses, etc.)

For Enfranchisement (Collective Freehold Acquisition for Flats)

Typically:

  • A required proportion (often 50% or more) of leaseholders must agree to join
  • The building must meet eligibility criteria (e.g. non-residential proportion floorspace limit, number of flats)
  • The property must fall within the relevant statutory regime (qualifying leases)
  • Under LFRA 2024, more buildings become eligible with relaxed thresholds

Because of these variables, we always begin with a qualification check before proceeding.

Our Lease Extension & Enfranchisement Service, Step by Step

Below is a typical workflow we follow, with legal scrutiny, client involvement, and strategic flexibility:

1. Initial Review & Strategy Meeting

  • We collect your lease, title documents, and service charge history
  • We examine whether your lease qualifies under current (and pending) law
  • We explain your options: individual extension versus joint enfranchisement
  • We provide a clear cost, risk, timeline estimate

2. Valuation & Premium Estimation

  • We will recommend an independent specialist valuer with a strong track record in lease extensions and enfranchisement. Comparing multiple valuation approaches can highlight where negotiation or Tribunal challenge is most likely to reduce cost. Our advice is always up-to-date with recent Tribunal outcomes and market trends
  • Under the existing regime, calculations use remaining term, ground rent, future value, and possibly marriage value
  • Under the 2024 reforms, valuation rules may change (e.g. marriage value removal, ground rent zero)
  • We advise whether negotiation or Tribunal is likely to drive a better outcome

3. Drafting & Serving Statutory Notices

  • We prepare the formal Notice of Claim (for lease extension) or Notice of Claim for Enfranchisement 
  • Notices must comply strictly with statutory form and deadlines, which may vary if transitional legal regimes apply. We double-check every notice and service procedure to avoid costly invalidation or delay. If you plan to act before or after a reform change, we will advise on the best timing and format

4. Negotiation & Response Management

  • We engage with the freeholder’s legal team or agents to negotiate terms
  • We push for fair terms (premium, payment timetable, costs)
  • If the freeholder objects or disputes valuation, we advise on the merits of escalation

5. Tribunal Application (if necessary)

  • If no agreement is reached, we prepare your application to the First-tier Tribunal (Property Chamber)
  • We present evidence, valuation reports, legal submissions
  • We aim for an efficient, persuasive hearing strategy

6. Completion, Transfer & Registration

  • We help draft and execute the formal documents (deed of extension, transfer of freehold, etc.)
  • We manage stamp duty, Land Registry registration, and cost apportionments
  • We ensure you receive full legal title, correct documentation, and peace of mind

Why Choose Jonathan Lea Network for This Work?

Leasehold Specialism + Depth of Team

We are specialists in leasehold and enfranchisement law. Unlike general property firms, we focus exclusively on the rights, reforms, and strategic challenges that leaseholders face. You benefit from years of case experience and a legal team well versed in Tribunal work, reform navigation, and valuation negotiation.

Transparent, Client-Centred Process

From the first meeting, you will know:

  • What your rights likely are
  • What your costs and risks might be
  • What your timescales are
    We break complex legal steps into manageable phases so that you stay in control and informed.

Cost Efficiency & Fee Structures

We use team delegation and project-based charging to keep your costs as lean as possible. In many cases we can offer:

  • Stage-based billing
  • Capped or fixed-fee elements for particular steps
  • Clear forecasts and alerts if unexpected complexity arises

You only pay for value delivered, not legal overheads.

Proactive Reform Edge

Because leasehold law is changing rapidly, we don’t just apply existing rules—we anticipate upcoming reforms and plan your case to take advantage of favorable changes. That might mean timing a claim, or structuring it to fit future regimes.

Robust Tribunal and Litigation Skills

If things get contested, we don’t shy away from Tribunal or legal proceedings. We prepare thoroughly, present strong cases, manage risks, and aim for the best possible result. Whether negotiation succeeds or we have to litigate, you get confident advocacy.

Common Client Concerns & How We Address Them

Concern Our Approach
“I can’t afford high premium or costs.” We will estimate your premium early and assess whether negotiation or Tribunal is likely to reduce it. We may structure payment plans or phased claims to smooth costs.
“What if the freeholder won’t agree to any offer?” We can issue statutory notices, escalate to Tribunal and enforce your rights under law. Deadlock is not the end—it triggers alternative routes.
“Will I lose control over my property or lease if I act?” We maintain your legal rights during the process. Where possible we use interim agreements. We ensure your interests are protected at all times.
“If I wait for the 2024 reforms, will it be cheaper or safer?” It depends. Some reforms are not yet in force, delay could reduce your negotiating power, or leave you out of scope. We will advise the best timing tailored to your lease.
“What happens after I buy the freehold—will I have extra burdens?” After acquiring the freehold, you or the company must manage building insurance, repairs, reserve funds, and compliance with statutory obligations. We offer governance and maintenance planning, so these new responsibilities don’t become an unexpected burden

Next Steps & Call to Action

If you think you may benefit from a lease extension or freehold acquisition, the longer you wait, the more expensive and challenging it may become. Your rights are time-sensitive, and our guidance can make a real financial difference.

Contact us for a no-obligation preliminary check—whether you want peace of mind or are ready to take action, Jonathan Lea Network’s expert team will identify your best legal pathway with transparency on cost, risk, and the timeline ahead

Don’t let uncertainty or cost fears delay your action, call us on 01444 708 640 or email us at wewillhelp@jonathanlea.net 

Frequently Asked Questions

After extension, can the landlord force me to pay ground rent again?

No. Under statutory extension regimes, the ground rent is typically reduced to a peppercorn (zero monetary rent). If your lease or notice is properly drafted, there should be no risk of revived ground rent.

Can I extend even if my remaining lease term is already short (e.g. under 70 years)?

Yes, the statutory regime allows extension even with shorter unexpired terms—though the premium may increase. Under the new reforms, the removal of marriage value helps limit the cost in such cases too.

If I buy the freehold with others, how do we share the costs and responsibilities?

Typically, leaseholders form a freehold company or trust, contributing in proportion to their flat share or by agreement. You’ll need a clear governance structure, rules for dispute resolution, budgeting, reserve funds, and maintenance roles.

Will mortgage lenders approve my extension or freehold acquisition?

If your property is a flat or house, most mainstream lenders accept statutory extensions and collective freehold acquisition, as long as legal and surveyor work meet current standards. We coordinate all lender documentation and requirements for a smooth transaction

What happens if the freeholder disputes my valuation or claim form?

They may serve a counter-notice disputing your premium or argument. We will respond with legal and valuation evidence, and if necessary apply to Tribunal for a determination. We manage that risk proactively.

Is there a time limit for making a lease extension or freehold claim?

Yes. Missing statutory deadlines, notice periods, or limitation dates can seriously jeopardize your rights or advantages. Our team proactively manages all critical dates and ensures that your claim is processed on time—so you never lose protection through procedural oversight.

Useful information:

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Our Enfranchisement & Lease Extensions Team

What Our Clients Say

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Request a Free No Obligation 20 Minute Call

This introductory call is to discuss your matter so we can provide a well-considered quote.

 

However, please be aware that the free 20 minute call is at our discretion. If you are more looking for advice and guidance on an initial call, we may instead offer a one-hour fixed fee appointment instead.

 

Our fixed fee appointments are between £200 – £300 + 20% VAT (£240 – £360 inclusive of VAT) depending on the seniority of the solicitor taking the call.

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