Logica Properties

Leasehold Transparency Tool

Understand the true cost of leasehold ownership. Enter your lease details to see running costs, extension estimates, and whether you need to act.

Leasehold Cost Projection

£
£
£
Between 80–90 years – consider extending soon. While not yet critical, extending before the lease drops below 80 years is significantly cheaper. Some lenders may restrict mortgages below 85 years.
Annual running costs (ground rent + service charge)£1,750/yr
Total ground rent over remaining lease£62,000
Lease extension cost is typically minimal above 80 years – the premium is mainly legal and valuation fees (£2,000–£5,000).

These are rough estimates only. Lease extension costs depend on many factors including the specific lease terms, ground rent escalation clauses, and the freeholder's cooperation. Always consult a specialist leasehold solicitor and a RICS-qualified valuer for accurate figures. The Leasehold Advisory Service (lease-advice.org) provides free initial advice.

Understanding Leasehold

If you own a leasehold property, you own the right to live in it for a set number of years. The freeholder owns the land and building. As a leaseholder, you typically pay:

  • Ground rent – an annual payment to the freeholder. Some leases have escalating ground rent that doubles every 10–25 years.
  • Service charge – covers maintenance of communal areas, building insurance, and management fees.

Why Lease Length Matters

  • Below 80 years: Most mortgage lenders won't lend. Lease extension becomes significantly more expensive because you must pay the freeholder “marriage value” (50% of the increase in property value from extending).
  • 80–90 years: Some lenders restrict. Extending before 80 is much cheaper.
  • Above 90 years: Generally no issues with lending or cost.

Your Rights

After owning for 2 years, you have the statutory right to extend your lease by 90 years (on top of the remaining term) and reduce the ground rent to zero (a “peppercorn”). This right was strengthened by the Leasehold Reform (Ground Rent) Act 2022, which capped ground rent at zero for new leases.

This tool provides estimates only. Consult a specialist leasehold solicitor for advice specific to your situation.