Lease Extensions for Freehold Owners

Callie Tuplin, Senior Solicitor at Holmes & Hills, explains why she advises leaseholders to extend their leases now, even when they already own a share of the freehold.

Why You Should Extend Your Lease Now

Many leaseholders successfully acquire a share of their building’s freehold, either through collective enfranchisement or by purchasing the freehold from their landlord, but then forget to extend their own leases. Owning the freehold does not automatically extend or alter the lease of your flat.

If you have an interest in the freehold, now is the ideal time to extend your lease.

1. Do Any of These Apply to You?

You should consider extending your lease if:

• You own a share in the company that holds your building’s freehold.
• You recently purchased the freehold following acollective enfranchisement claim.
• You and your fellow leaseholders jointly own the freehold.
• You are a landlord approached by leaseholders seeking a lease extension.

Many people assume that owning the freehold solves all lease-related issues. But your lease will continue to shorten and your ground rent obligations remain legally binding until the lease is formally extended.

2. Why Extending Your Lease Still Matters

Even if you own part or all of the freehold:

• Your lease term still reduces each year.
• You remain legally required to pay any ground rent in your existing lease.
• You could face delays or complications when:
  • Selling your flat
  • Remortgaging
  • Dealing with buyers whose lenders require a longer lease

Most leaseholders only realise they need an extension when a saleor remortgage stalls,  often at the worst possible time.

3. Costs of Extending Your Lease

The good news is if you already own an interest in the freehold, there is usually:

• No premium to pay - extending your lease is typically free, aside from legal and administrative costs.
• Lease can be extended up to 999 years - you can choose the new term length, up to a maximum of 999 years.
• Ground rent reduced to a peppercorn - This means zero ground rent going forward, literally the equivalent of a single peppercorn!

How We Can Help

Our enfranchisement team are specialists in lease extensions, enfranchisement and all aspects of leasehold property law and can assist with all aspects of the process, including:

For Freehold‑Owning Leaseholders

• Advising on the best approach
• Preparing the lease extension documents
• Coordinating extensions for the entire block or individual flats
• Completing and registering the new leases

For Landlords

• Responding to leaseholder extension requests
• Drafting and negotiating lease extension terms
• Managing the legal process through to completion and registration

Take the Next Step

If you hold a legal interest in your building’s freehold, extending your lease ensures long‑term security, protects your property’s value, and prevents unnecessary complications during sales or remortgaging.