If you own a flat on a lease, the term shrinks every year — and once it nears 80 years, extending gets sharply more expensive. Section 42 is the statutory route to extend a residential lease. Here’s how it works, the 80-year cliff edge, the process, and how recent leasehold reform is changing the rules.
Section 42 of the Leasehold Reform, Housing and Urban Development Act 1993 gives qualifying leaseholders of flats the statutory right to extend their lease. The extension adds years to the term and usually reduces the ground rent, in exchange for a premium paid to the freeholder.
You generally need to be the leaseholder of a flat held on a long lease. Historically there was a two-year ownership requirement before you could claim — but leasehold reform is changing the qualifying rules, so check the current position before you serve notice.
Once a lease drops below 80 years, “marriage value” has historically been added to the premium, making an extension significantly more expensive. Extending before you hit 80 years can save thousands — though reform is changing how the premium is calculated.
The Leasehold and Freehold Reform Act 2024 is reshaping lease extensions — for example, longer standard extension terms, changes to the ownership qualifying period, and reform of marriage value. Provisions are being brought in over time, so the exact position depends on what’s in force when you act. Take specialist advice before serving notice.
Ideally well before it drops below 80 years, after which the premium has historically risen sharply due to marriage value. Reform is changing this, so check the current rules.
The statutory extension has traditionally added 90 years to the existing term for flats; leasehold reform is increasing standard extension lengths, so confirm the current entitlement.
An extra element of the premium that has applied once a lease falls below 80 years. Its future is being changed by leasehold reform.
If you can’t agree terms, the First-tier Tribunal can determine the premium and the terms of the extension.
Section 42 is the route for flats; leasehold houses have a separate statutory regime.
This guide is general information, not professional tax or legal advice. Rules, rates and thresholds change — check GOV.UK and take advice for your own situation.
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