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Read Full Bio >When a leasehold ends, the property reverts to the freeholder. You are not evicted overnight: Schedule 10 of the Local Government and Housing Act 1989 lets most flat leaseholders stay on as assured tenants at a market rent.
Key takeaways
- On expiry, ownership of both the building and the land returns to the freeholder — even if your mortgage is fully paid off.
- Schedule 10 of the Local Government and Housing Act 1989 protects long residential tenancies (leases originally granted for more than 21 years): the freeholder must serve a prescribed notice 6–12 months in advance and needs a court order to take possession.
- Leases almost never actually run out. The real damage happens long before that, at 80 years remaining, when marriage value kicks in and extension costs jump.
- Since 31 January 2025 you no longer need to have owned the property for two years before serving a statutory lease-extension or freehold-purchase notice (Leasehold and Freehold Reform Act 2024, s.27).
- Marriage value abolition and 990-year extensions are law on paper but not in force as of August 2026. A Court of Appeal hearing is expected late 2026 or early 2027, and a new Commonhold and Leasehold Reform Bill is due in Parliament in Autumn 2026.
- If you need to move now rather than wait years for reform, a short-lease flat can still be sold — but below 80 years you are effectively selling to cash buyers only.
Most people searching this question are not standing at the end of a 99-year lease with a removal van outside. They have just been told the lease on their flat is 82 years, or 74, or 61 — and they want to know what that actually means for their home, their mortgage and their ability to sell. This guide answers both: the legal reality at expiry, and the far more likely problem of a lease that is simply getting short.
What actually happens on the day your lease expires?
Legally, the lease is a fixed-term right to occupy. When the term ends, that right ends and the freeholder’s title becomes unencumbered — they own the flat and the land outright. Any kitchen you fitted, extension you built or bathroom you replaced becomes theirs too, with no compensation.
What does not happen is an eviction. For a long residential tenancy — a lease originally granted for more than 21 years — Schedule 10 of the Local Government and Housing Act 1989 gives you security of tenure. Three things can follow:
- The freeholder serves notice proposing an assured periodic tenancy. You stay in the property and start paying a market rent instead of ground rent. The notice must be in the prescribed form and given not more than twelve months, and not less than six months, before the termination date it specifies.
- The freeholder serves notice seeking possession. They can only do this on limited statutory grounds (for example redevelopment), and they must obtain a court order. They cannot simply take the keys back.
- Nothing happens and you hold over. The tenancy continues on the same terms until one side takes a formal step. In this window you may still be able to extend the lease or buy the freehold, though by that point it will be extremely expensive.
Which regime applies depends on your lease. Schedule 10 covers long residential tenancies at a low rent; some older cases fall under Part 1 of the Landlord and Tenant Act 1954 instead. If your lease is genuinely close to expiry, this is a solicitor question, not a Google question — get a specialist enfranchisement solicitor, ideally a member of the Association of Lease Extension Practitioners (ALEP).
How do I find out how many years are left on my lease?
Your lease term runs from the date the lease was originally granted, not from the date you bought. A “125-year lease” granted in 1972 has 71 years left in 2026, not 125.
- Check the official register. Download your title and lease from HM Land Registry for a small fee. This is the definitive answer.
- Check your own lease document. The term is set out near the front — look for the commencement date and the number of years.
- Ask the freeholder or managing agent. Free, but confirm it against the register.
- If you are buying, the lease length appears in the Leasehold Property Enquiries (LPE1) pack your conveyancer requests. Do not rely on the estate agent’s particulars — they are frequently wrong or out of date.
What lease length is safe, and when does a lease become a problem?
There is no single cut-off, but there are three thresholds that lenders, surveyors and buyers all watch: 80 years, roughly 70 years, and 60 years. Here is what each remaining term means in practice.
| Years remaining | What it means | What to do |
|---|---|---|
| 999 / 990 years | Effectively freehold in all but name. No practical impact on value or mortgageability. | Nothing |
| 125+ years | Common on ex-council Right to Buy flats and newer developments. Comfortable. | Nothing for now |
| 90–125 years | A normal, saleable, mortgageable lease. Value impact is negligible. | Monitor |
| 82–90 years | The warning zone. You are within a decade of the 80-year marriage-value cliff, and a slow sale can eat that buffer. | Get a valuation; plan an extension |
| 80–82 years | Act now. Once you cross 80 the premium jumps, and it is not worth gambling on reform arriving in time. | Extend as a priority |
| Under 80 years | Marriage value is payable: you owe the freeholder 50% of the extra value the extension creates. Many lenders tighten criteria. | Specialist advice needed |
| Under 60–70 years | Mainstream mortgage lending largely dries up. The buyer pool narrows to cash purchasers and investors. | Extend, or sell to a cash buyer |
| Under 30 years | Very few conventional buyers. Value is heavily discounted and extension premiums are large. | Specialist valuation essential |
Lender criteria vary considerably. As a rule of thumb many lenders want at least 70 years remaining at the start of the mortgage and a margin of 30 to 40 years beyond the end of the mortgage term — so a 25-year mortgage on a 90-year lease is fine, while the same mortgage on a 70-year lease may be declined. Always check the individual lender.
How much value does a short lease actually cost you?
A leasehold flat is a wasting asset: as the term shortens, the value transfers back to the freeholder. Surveyors express this as a relativity figure — the value of the flat with its current short lease as a percentage of its value with a long lease.
The damage is not linear. Above 90 years the discount is small enough to be invisible in a normal sale. Between 80 and 90 years it becomes a negotiating point. Below 80 years the discount widens quickly, because the buyer is pricing in the extension premium plus the marriage value they will have to pay. That is why two identical flats in the same block can be marketed £30,000 apart on lease length alone.
The practical consequence for a seller is not just price — it is time. Short-lease flats attract fewer viewings, more failed mortgage valuations and more withdrawn offers. Around one in four agreed UK sales fall through before completion; on a sub-80-year lease that risk is materially higher, because the lease is one more thing for a lender or a nervous buyer to fail you on. If you want to understand the wider picture, our guide to why a property isn’t selling covers the other common blockers.
What are your options if the lease is running short?
Four realistic routes, and they are not mutually exclusive. Which one fits depends on how long you plan to stay, how much cash you can raise, and whether your neighbours will act with you.
| Option | What it is | Typical cost | Best for |
|---|---|---|---|
| Statutory lease extension | A legal right to add 90 years to a flat lease (50 years for a house) at a peppercorn ground rent, under the Leasehold Reform, Housing and Urban Development Act 1993. | Premium plus both sides’ legal and valuation fees; rises steeply below 80 years | Owners staying put, or preparing to sell |
| Informal extension | A negotiated deal directly with the freeholder, outside the statutory process. | Can be cheaper and quicker — but terms are whatever you agree | Reasonable freeholders; check the small print for onerous ground rent |
| Collective enfranchisement | Leaseholders club together to buy the freehold of the building outright. | Shared premium plus professional fees; needs at least half the qualifying flats | Blocks where neighbours co-operate |
| Right to Manage (RTM) | Take over management of the building without buying the freehold (Commonhold and Leasehold Reform Act 2002). | Lower cost; does not extend the lease | Service-charge disputes, not lease length |
| Sell as-is | Sell the flat with the short lease and let the buyer deal with it. | Reflected in the price you achieve | Owners who need to move now, or cannot fund an extension |
One point worth knowing: if your freeholder ever decides to sell the freehold, they generally have to offer it to the qualifying leaseholders first. That is the right of first refusal under section 5 of the Landlord and Tenant Act 1987. Do not ignore that letter if it arrives.
How much does it cost to extend a lease in 2026?
There is no fixed price. The premium is a valuation calculated from four things: the value of the flat, the number of years left, the ground rent payable, and — if the lease is under 80 years — the marriage value. Because the calculation is partly subjective, the figure is negotiable and, if you cannot agree, determined by the First-tier Tribunal (Property Chamber).
Alongside the premium you should budget for your own solicitor, your own valuation surveyor, and the freeholder’s reasonable legal and valuation costs, which you pay under the statutory route. If the freeholder demands a deposit with your notice, it is the greater of £250 or 10% of the premium you proposed, payable within 14 days.
The process itself is straightforward once you have the right people:
- Confirm you qualify. You need a long lease (originally granted for more than 21 years). Since 31 January 2025 there is no longer a two-year ownership requirement.
- Instruct a specialist solicitor — ideally an ALEP member — and a valuation surveyor experienced in enfranchisement in your area.
- Get the valuation so you know your realistic range before you commit to a figure.
- Serve the section 42 notice on the freeholder, proposing your premium.
- Pay the deposit if the freeholder requires it.
- Negotiate — the freeholder’s counter-notice opens a period for agreement, with the tribunal as the backstop.
Expect three to twelve months end to end. If you are weighing that against simply moving, our breakdown of what you actually walk away with when you sell is a useful sanity check.
What has changed in leasehold law, and what is still coming?
This is where most articles on this topic go stale, so here is the position as at 10 August 2026.
The Leasehold and Freehold Reform Act 2024 received Royal Assent in May 2024, but the headline benefits are staged and most are still not switched on. The valuation reforms — abolishing marriage value and moving to a standard 990-year extension term at zero ground rent — need secondary legislation setting the prescribed deferment and capitalisation rates before they can commence, and that has not happened. Separately, freeholders challenged the Act; the High Court dismissed the challenge in October 2025, the Court of Appeal granted permission to appeal in April 2026, and a hearing is expected in late 2026 or early 2027.
| Reform | Status at August 2026 | What it means for you |
|---|---|---|
| Two-year ownership rule removed | In force since 31 January 2025 | You can extend or buy the freehold immediately after purchase |
| Peppercorn ground rent on new leases | In force (Leasehold Reform (Ground Rent) Act 2022) | Most new residential long leases cannot charge a real ground rent |
| Marriage value abolished | Not in force; awaiting commencement | Below 80 years, you still pay 50% of marriage value today |
| 990-year standard extension term | Not in force | Statutory extensions are still 90 years (flats) / 50 years (houses) |
| Ban on new leasehold houses | Not commenced | No practical effect yet |
| Court of Appeal challenge | Hearing expected late 2026 / early 2027 | Adds uncertainty to the commencement timetable |
| Commonhold and Leasehold Reform Bill | Draft published January 2026; committee report 27 May 2026; Bill expected Autumn 2026 | Would make commonhold the default for new flats and cap existing ground rents |
The draft Commonhold and Leasehold Reform Bill, published in January 2026 and scrutinised by the Housing, Communities and Local Government Committee (which reported on 27 May 2026), goes further than the 2024 Act. It proposes banning leasehold for most new flats in favour of commonhold — a form of ownership created by the Commonhold and Leasehold Reform Act 2002 in which each flat is a freehold unit and the shared parts are run by a commonhold association of the owners. It also proposes capping ground rents in existing flat leases at £250 a year, converting to a peppercorn after 40 years. The Government has indicated it wants Royal Assent by mid-2027. Parliament’s own House of Commons Library briefing on leasehold reform tracks the timetable as it moves.
The honest read for a homeowner: reform is real but slow, and none of it is retrospective compensation for a lease you let slip under 80 years in the meantime. If your lease is at 82 years today, waiting for the Act to commence is a gamble on a timetable that has already slipped repeatedly.
Can you sell a flat with a short lease?
Yes — but be realistic about who the buyer is. Above 90 years, a short lease is a non-issue. Between 80 and 90 years, expect it to be raised in negotiation. Below 80 years, most mainstream mortgage lenders tighten or decline, and below roughly 60 to 70 years you are selling to cash buyers, investors and specialist purchasers.
That leaves three practical routes:
- Extend first, then sell. Usually gets the best headline price, but costs money up front and adds three to twelve months to your timeline.
- Serve the notice and assign it. You can serve the section 42 notice and transfer the benefit of that claim to your buyer on completion, so they can complete the extension. This keeps a mortgage-dependent buyer in the game.
- Sell to a cash buyer as-is. No extension, no lender, no chain. You accept a lower figure for speed and certainty.
Springbok Properties buys leasehold flats with short leases directly. A Springbok cash offer is typically around 75–85% of market value — roughly 80% on average — with completion in 7 to 28 days and no fees to you. We have bought homes from more than 19,000 UK homeowners since 2012 and hold 11,700+ verified reviews. That is a genuine discount, and it is the honest trade for removing the lender, the chain and the lease from the equation. If speed is not your problem, extend the lease and sell on the open market — you will get more. Our guide to the cheapest way to sell a house sets out the alternatives, and how we buy any house explains our process.
What if the freeholder is absent or refuses to engage?
An absent freeholder is an obstacle, not a dead end. You serve notice at their last known address and must be able to show the court you made all reasonable efforts to trace them — usually via a tracing agent and a Land Registry search. You then apply to the County Court for a vesting order. Your surveyor prepares an expert report, the First-tier Tribunal (Property Chamber) determines the premium, and the court grants the extension in the freeholder’s place. It is slower and costs more, but it works.
A freeholder who is present but obstructive is a different problem with the same answer: the statutory route exists precisely so they cannot refuse. If they ignore your section 42 notice or fail to serve a valid counter-notice in time, your solicitor can apply to the court for the lease to be granted on your proposed terms.
Frequently asked questions
What happens when a leasehold ends?
When a leasehold ends the property reverts to the freeholder, who owns both the building and the land again. In practice you are rarely evicted: under Schedule 10 of the Local Government and Housing Act 1989 most long-lease occupiers can stay on as assured tenants paying a market rent.
Can I be evicted the day my lease expires?
No. Your freeholder cannot simply change the locks. To end a long residential tenancy they must serve a prescribed notice between six and twelve months before the termination date, and to actually recover possession they need a court order on limited statutory grounds. That process takes many months.
What is the 80-year rule on a leasehold?
Once a lease drops below 80 years the leaseholder must pay the freeholder 50% of the marriage value — the extra value created by extending — on top of the normal premium. As of August 2026 marriage value has not yet been abolished, so crossing 80 years still costs real money.
Has marriage value been abolished yet in 2026?
Not yet. The Leasehold and Freehold Reform Act 2024 abolishes marriage value on the statute book, but the valuation provisions have not been commenced as of August 2026 and a Court of Appeal challenge is listed for late 2026 or early 2027. Marriage value remains payable today.
Do I still need to have owned the flat for two years to extend?
No. Section 27 of the Leasehold and Freehold Reform Act 2024 removed the two-year ownership requirement with effect from 31 January 2025. You can now serve a statutory lease-extension or freehold-purchase notice as soon as your ownership is registered at HM Land Registry.
Can you sell a flat with a short lease?
Yes, but the buyer pool shrinks sharply below 80 years and most mainstream lenders decline, so you are largely limited to cash buyers. Springbok Properties buys leasehold flats with short leases directly, typically at around 75–85% of market value with completion in 7 to 28 days.
The bottom line
A leasehold ending is a legal cliff edge that almost nobody actually falls off — the statutory protections in Schedule 10 see to that. The real risk is quieter: a lease drifting under 80 years while you are not watching, quietly taking tens of thousands off your home’s value and shrinking the pool of people who can buy it. Find out your exact remaining term this week. If it is above 90 years, diarise it. If it is between 80 and 90, get a valuation now. If it is already below 80, take specialist advice before you do anything else — and if you need to move before any of that can be resolved, selling to a cash buyer is a legitimate option, provided you go in knowing exactly what the discount is.
