Leasehold Transparency Tool

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.