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Property Tools

Leasehold Calculator

Extension premium, lease depreciation, ground rent analysis, mortgage eligibility, and a plain-English verdict on whether to buy.

Lease Risk

75yrs

Caution

🏠 Property Details

💰 Ground Rent

⚙️ Costs & Settings

🏦 Mortgage Eligibility

Most high-street lenders (85+ yrs)✗ No
Standard mortgageable (70+ yrs)✓ Yes
BTL lenders (usually 70+ yrs)✓ Yes
Unmortgageable risk (<60 yrs)✓ Safe

Freehold Equivalent Value

£289,256

What it'd be worth at 999 yrs

Lease Discount

3.2%

75-yr lease vs freehold

Extension Premium

£18,910

+90 yrs statutory estimate

Value Gain After Extension

£9,256

Equity created by extending

Caution Lease — 75 years remaining

Some lenders will refuse. Plan your extension now — every year below 80 adds cost.

📊 Value Analysis

Current value (with lease)£280,000
After extension (+90 yrs = 165 yrs)£289,256
Freehold equivalent (999 yrs)£289,256

⏱️ Annual lease depreciation

£5,207/year

This is roughly how much value the lease loses each year as it runs down — assuming no extension.

Annual Leasehold Costs

Ground rent£250/yr
Service charge£2,400/yr
Total annual charges£2,650/yr

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Frequently Asked Questions

What happens when a lease drops below 80 years?

Below 80 years, 'marriage value' kicks in — the freeholder is entitled to 50% of the value created by the extension. This significantly increases the premium. As a rule of thumb, extend before the lease drops below 85 years to avoid this cost.

How much does a lease extension cost?

The cost has two parts: the statutory premium (calculated by a surveyor using the Leasehold Reform Act 1993 formula) plus professional fees. For a 75-year lease on a £280,000 flat, expect a total cost of £8,000–£20,000 including legal fees, the freeholder's costs, and surveyor fees. This calculator provides an estimate — always get a formal RICS valuation.

Can I get a mortgage on a short lease?

Most high-street lenders require at least 85 years remaining (to ensure the lease will still have 70+ years at end of a 25-year mortgage term). Between 70–85 years, some specialist lenders may still lend. Below 70 years, very few lenders will consider it — the property becomes very hard to sell.

What is marriage value in leasehold?

Marriage value is the increase in property value created by extending the lease. When a lease drops below 80 years, the freeholder becomes entitled to 50% of this marriage value as part of the extension premium. This is why extending before 80 years is critical — it can save tens of thousands of pounds.

How long does a lease extension take?

A statutory lease extension under the Leasehold Reform Act 1993 typically takes 6–12 months from serving the initial notice (Section 42 notice) to completion. The process involves serving notice, the freeholder counter-proposing, negotiation, and eventual completion. You must have owned the property for at least 2 years before you can apply.

What is the difference between statutory and voluntary lease extension?

A statutory extension (under the 1993 Act) adds exactly 90 years to your current term and reduces ground rent to peppercorn (£0). A voluntary extension is negotiated directly with the freeholder — terms vary but you can extend for more years or get other benefits. Statutory is usually better value; voluntary avoids the formal legal process but the freeholder can set higher terms.

Disclaimer: PropertyVault UK is not authorised or regulated by the Financial Conduct Authority (FCA). The content on this page does not constitute financial advice, investment advice, or mortgage advice. Always consult an FCA-regulated independent financial advisor or mortgage broker before making financial decisions. Your property may be repossessed if you do not keep up repayments on a mortgage.

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