The short answer
A leasehold purchase gives you the right to occupy a property for the remaining term of a lease; it is not the same as owning the land indefinitely. Before exchange, your conveyancer should explain the lease length, charges, restrictions, management arrangements and any costly work planned. This guide mainly covers England and Wales: Scotland and Northern Ireland use different property-law systems.
Why the remaining years matter
The term runs from the date the lease was originally granted, not from your purchase. A flat advertised with a 125-year lease granted 30 years ago has about 95 years left. A shortening lease can affect value, saleability and mortgage choice. Government guidance says lenders are typically less willing where fewer than 80 years remain, and under the current extension valuation rules the cost can rise significantly at 80 years or below because marriage value may apply.
Do not rely on promised reforms
The Leasehold and Freehold Reform Act 2024 provides for longer 990-year statutory extensions and valuation changes, but provisions require commencement and supporting rules. Current GOV.UK consumer guidance still describes qualifying statutory extensions of 90 years for flats and 50 years for houses. Ask a specialist adviser which law is actually in force on the date you act; do not price a purchase on an uncommenced reform.
Statutory and informal extensions
A statutory claim follows legislation, eligibility rules, notices, valuation and deadlines. An informal extension is negotiated directly with the freeholder. Informal can appear quicker, but compare the whole proposal: added years, new ground rent, review clauses, legal costs and changed lease terms. Use a solicitor and valuer experienced in lease extensions before serving a notice or accepting terms.
Charges and building risk
- Service charge: ask what it covers, at least two years of accounts and the current budget.
- Major works: obtain Section 20 notices, planned-maintenance reports and expected contributions.
- Reserve fund: check its balance, permitted use and whether contributions transfer on sale.
- Ground rent: read the actual lease and escalation formula. Most new regulated long leases granted from 30 June 2022 are restricted to a peppercorn, but buying an older lease does not reset it.
- Administration fees: budget for notices, certificates, consents and management packs.
Restrictions to investigate
Check rules on pets, subletting, short lets, working from home, flooring, parking and alterations. Confirm repair responsibilities, buildings insurance, fire and building-safety information, disputes, arrears and whether the freeholder or managing agent is responsive.
Questions before exchange
- What is the exact commencement date and unexpired term?
- Will the lender accept the term and ground-rent clauses?
- Are extension rights available now, and what are realistic premium and professional-cost ranges?
- What have service charges done over recent years?
- Are major works, consultations or disputes pending?
- Does the lease permit how you intend to live in or alter the home?
- Who owns the freehold and who manages the building?
Sources and limitations
Read the government’s buying or owning a leasehold home and current extension guidance, plus the independent Leasehold Advisory Service. Lease extension law is technical and changing. Obtain property-specific legal and valuation advice.
Reviewed by the Properties & Homes editorial team
Published and last reviewed: 14 August 2026.
Change log: first edition; current-versus-future reform position stated explicitly.