Leasehold advisory for leaseholders and freeholders
A lease extension valuation is an independent assessment, by a RICS-qualified valuer, of the premium payable to extend the lease of a flat and the assumptions behind it. As lease extension surveyors, we advise leaseholders and freeholders on the property’s value, the lease terms and the evidence, with negotiation support where it is part of the instruction.
Sterlingworth Surveyors is a RICS-regulated firm (Firm Registration Number 850747) based in Chessington. We give valuation advice, not legal advice: a solicitor handles the notices and legal documents, and we work alongside them.
A lease extension is when a leaseholder pays the freeholder to add years to the lease of their flat. The payment is called the premium. A longer lease generally makes the flat easier to sell and mortgage, and protects its value, because a lease is a wasting asset: each year that passes leaves less of it.
There are two ways to extend a lease of a flat:
| Statutory route | Informal extension | |
|---|---|---|
| How it starts | A formal notice from the leaseholder | An approach to the freeholder |
| Terms | Set by legislation | Whatever the parties agree |
| Premium | Assessed on the statutory basis; the tribunal decides if there is no agreement | Negotiated |
| Deadlines | Strict, with consequences if missed | None, unless agreed |
| Valuation advice | Needed before the notice is served and to respond to it | Needed to judge whether the offer is fair |
The law on lease extensions in England and Wales is changing. The Leasehold and Freehold Reform Act 2024 includes major reforms. One is already in force: since 31 January 2025, a leaseholder no longer has to have owned the flat for two years before using the statutory route. Others, including standard lease extensions of 990 years and a new way of calculating the premium that removes marriage value, are not yet in force.
Until a change is in force, the earlier rules continue to apply to it, so do not rely on reports of future changes when deciding whether to act. Your valuer and solicitor will confirm which rules apply to your claim.
For official guidance, see GOV.UK on extending, changing or ending a lease.
The premium mainly depends on how many years are left on the lease, the value of the flat, the ground rent, and the valuation rules that apply to your claim. Under the rules that have applied to statutory claims, the premium compensates the freeholder for what they give up, and can include a share of marriage value where the lease is short.
Relativity is the value of a flat with its existing, shorter lease expressed as a percentage of its value with a long lease. It matters where marriage value is part of the calculation, and it can be an important point in a negotiation.
The deferment rate is the percentage used to work out what the freeholder’s right to get the flat back in the future is worth today. The further away that date, and the higher the rate, the lower today’s value. A related capitalisation rate is used to value the ground rent income.
Before you start negotiating or serve a formal notice, and ideally well before the lease falls to 80 years. Under the rules that have applied, marriage value becomes payable once 80 years or fewer remain, which is why that point has mattered so much. Even above it, the lease shortens every year.
In outline, a statutory lease extension of a flat moves through a notice, a counter-notice, negotiation and, if needed, the tribunal. Your solicitor runs the legal steps; your valuer advises on the premium at each stage.
Your valuer assesses the premium, so the figures in the notice are supported by evidence.
The leaseholder’s solicitor serves a formal notice on the landlord (usually the freeholder), claiming a new lease and proposing a premium. The date it is given is the date used for the valuation.
The freeholder replies with a counter-notice, which accepts or disputes the claim and proposes its own premium and terms.
The two sides’ surveyors negotiate the premium, usually narrowing the differences over relativity, value and the other inputs.
If the premium or terms are not agreed, either side can apply to the First-tier Tribunal (Property Chamber) in England, or a leasehold valuation tribunal in Wales, which decides the matter.
The new lease is drawn up and completed by the solicitors.
Strict time limits apply at several stages; your solicitor will confirm which apply and make sure they are met. That is one reason to take legal advice from the start.
A lease extension valuer works out a supportable premium from the lease, the property and market evidence, explains it in a report, and, if instructed, negotiates it with the other side’s surveyor.
We confirm the lease details, who we are acting for and what you need the valuation for.
We review the lease, the ground rent and the unexpired term, and gather comparable evidence of values.
We inspect the flat where the instruction requires it, noting anything that affects value, including any improvements to be disregarded.
You receive a clear report setting out the premium, the evidence and assumptions behind it, how sensitive it is to the key inputs, and what to do next.
Where instructed, we negotiate the premium with the freeholder’s or leaseholder’s surveyor, and support the case through offers and counter-offers and, if agreement cannot be reached, at tribunal.
A lease extension valuation is valuation advice, not legal advice. Most lease extensions need both a valuer and a solicitor, and the two roles are different.
We work with leaseholders, freeholders and their solicitors. If you have not yet appointed a solicitor, it is sensible to instruct one experienced in leasehold law before any notice is served.
The total cost is made up of the premium paid to the landlord, your own professional fees and, on the statutory route under the current rules, the landlord’s reasonable costs. The premium depends on the factors explained above, which is why it needs a valuation rather than a rule of thumb. Our fee depends on the property and the service you need, including whether negotiation is part of it. Tell us about the flat and the lease, and we will confirm our fee before you instruct us. Our lease extension cost guide explains how the premium is worked out.
Our lease extension valuation fee starts from £725 for properties worth up to £400,000. This is our fee only, not the premium or the landlord's costs. All fees include VAT.
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In practice, yes. On the statutory route the notice must propose a premium, and it should be supported by a proper valuation. On an informal extension, a valuation tells you whether the freeholder’s figure is fair before you agree. Freeholders need one too, to respond to a notice or a request. A lease extension surveyor gives you evidence rather than guesswork.
Yes, where negotiation is part of the instruction. We negotiate with the freeholder’s or leaseholder’s surveyor, using the evidence in our valuation, and aim to agree a fair premium without the need for a tribunal hearing. If agreement is not possible, the tribunal can decide.
Yes. We advise leaseholders, freeholders and their solicitors. Before we start, we confirm in writing who we are acting for, so our advice and any negotiation are clearly on your behalf.
No. An online calculator gives a rough guide from a few inputs. A valuation is prepared by a qualified valuer using the lease, the property and market evidence, and sets out its assumptions. It is what you rely on when serving a notice, responding to one or negotiating.
For now, it is sensible to. Under the rules that have applied, marriage value is added to the premium once 80 years or fewer remain. The Leasehold and Freehold Reform Act 2024 removes marriage value, but only once that change is in force. The law in this area is changing, so your valuer and solicitor will confirm which rules apply to you.
It depends on the route and the rules in force when you claim. The statutory route has granted an extra 90 years at a peppercorn ground rent, and the 2024 Act provides for 990-year extensions once that change is in force. On an informal extension, the term is whatever you agree. Your solicitor will confirm what applies.
Yes, if you are otherwise a qualifying leaseholder. The statutory route used to require a leaseholder to have owned the flat for two years, but that requirement was removed in England and Wales on 31 January 2025. Your solicitor will check that you qualify before a notice is served, and we can value the premium as soon as you are ready.
No. We provide valuation advice only. You should also instruct a solicitor experienced in leasehold law to advise you, handle the notices and prepare the legal documents. The information on this page is general, applies to England and Wales, and is not legal advice.
Whether your lease is approaching 80 years, you have been quoted a premium, or you have received a notice, advice before you commit keeps your options open. Tell us about the flat and the lease, and we will confirm the scope and our fee before you instruct us.
You can also see all our residential valuation services in one place.
Important: the information on this page is general, applies to England and Wales and is not legal advice. Leasehold law is changing; your solicitor can confirm the position that applies to you.
