A Guide for Shared Ownership Leaseholders

Callie Tuplin, Senior Solicitor at Holmes & Hills, explores the complexities of shared ownership lease extensions, from the 80‑year threshold and marriage value to voluntary extensions and modernising outdated lease terms.

Holmes & Hills acts for clients nationwide and specialises in advising leaseholders on shared ownership lease extensions. Our expertise is recognised through our membership on the ALEP (Association of Leasehold Enfranchisement Practitioners) panel, meaning we are well‑placed to guide and represent you throughout the process.

Why Lease Extensions Matter for Shared Ownership

Shared ownership properties, whether flats or houses, are always leasehold. This means the lease term reduces every year. As the length shortens, important issues arise for homeowners.

The 80‑Year Threshold

When a lease reaches 80 years, the law requires marriage value to be paid if you extend the lease. This can significantly increase the cost. A specialist surveyor would be needed to estimate the uplift in value after extension, which determines the marriage value.

Impact on Mortgages and Sales

• Many lenders are reluctant to lend on shorter leases.
• Remortgaging may only be possible if the funds are used to extend the lease.
• Selling with a short lease often requires a cash buyer.
• Leases under 85 years become less attractive to potential purchasers.

For these reasons, extending before reaching 80 years is strongly recommended.

Voluntary Lease Extensions for Shared Ownership

Shared ownership leases do not carry a statutory right of extension until you have staircased to 100% ownership.

However, before full ownership, you may still request a voluntary lease extension from your Housing Association or landlord.

Key Points

• The landlord is not legally required to agree.
• Most Housing Associations understand the difficulties caused by short leases and are willing to extend.
• Typical extension outcomes may include:
  • A new 99‑year lease,
  • An additional 90 years, or
  • A term extended to 990 years from the original commencement date.

Amending the Lease at the Same Time

When extending a shared ownership lease, you may also be able to negotiate amendments to the wording of the lease. Landlords are not obliged to agree, but certain terms are frequently addressed.

Removal of Pre‑Emption Clauses After Final Staircasing

Older shared ownership leases often contain 21‑year pre‑emption provisions after reaching 100% ownership. These restrict how and to whom you can sell in the first 21 years after final staircasing.

Since 30 April 2015, Homes England guidance states that such clauses should no longer be included and encourages providers to update older leases to remove them. If these clauses still appear in your lease, we can attempt to negotiate their removal as part of the extension, saving you from needing a separate deed of variation later.

Why Specialist Advice Is Crucial

Shared ownership leases contain nuanced terms that differ from standard leasehold arrangements. A lawyer unfamiliar with these differences may miss issues that affect affordability, marketability, or mortgageability.

Holmes & Hills has a dedicated specialist team with expertise in:

• Shared ownership leases
• Lease extension law
• Complex landlord and tenant provisions

We understand the legislative changes and the evolving guidance affecting shared ownership.

Future Legal Changes

The government has discussed abolishing marriage value, and the Leasehold and Freehold Reform Act 2024 received Royal Assent but is not yet in force. Future reforms may change extension costs and processes. Our team monitors all developments to ensure clients receive up‑to‑date advice.

Take the Next Step

If you currently own a shared ownership property or are looking to purchase one and the lease needs extending please get in touch. Our enfranchisement team are specialists in lease extensions, enfranchisement and all aspects of leasehold property law.