Help with rental property lease extension?

Hello everyone, I’m seeking advice on extending the lease for my rental property, which is approaching the dreaded 80-year short lease/marriage value that I want to avoid.

The property is a flat in a block of 6 flats. Each flat owner (leaseholder) also owns a share of the Freehold company that owns the Freehold. In other words, each flat owner is both a leaseholder and a joint-freeholder. I’m looking to extend my leasehold, however, it’s unclear to me what legal steps, if any, I need to take to do this.

Some of the advice I’ve received so far suggests that I/we do nothing since we own the Freehold, however, I don’t think this makes sense, especially as HM Land Registry record clearly states the remaining Lease term and makes no mention of the fact that the property owner is also the Freeholder.

I’d very much appreciate any advice or guidance I can get on how to extend my lease and update the Land Registry records accordingly under these circumstances. Will also appreciate referrals on solicitors with deep experience in these matters.

Thank you,

Mary

Editor’s Note:

You’re right to act before the lease drops below 80 years, because even though you own a share of the freehold, the marriage value issue and potential mortgage/lending difficulties still apply until the lease itself is formally extended and registered.

You are:

A leaseholder of your flat (the lease is the legal interest that defines your right to occupy), and

A shareholder/member of the freehold company that owns the freehold title.

That means you own the freehold collectively with the other five leaseholders through the company — but your flat’s lease still exists as a separate legal document with its own expiry date. HM Land Registry records the lease term because that’s the actual title you own and can sell or mortgage.

Therefore, to “extend the lease,” you need to formally vary or replace the lease even though you control the freeholder entity

The Correct Procedure (Informal / Internal Route)

Because all leaseholders are effectively the landlords through the company, this is typically a voluntary lease extension rather than the statutory 90-year process under the 1993 Act.

The usual steps:

Board / Shareholder Resolution

The freehold company (as landlord) passes a board resolution agreeing to grant you a lease extension.

Usually, all the other participating shareholders (the other flat owners) sign to approve.

Draft a Deed of Variation or New Lease

There are two legal mechanisms:

Deed of Variation – simplest if you’re just increasing the lease term (e.g. from 82 years to 999 years) and removing ground rent.

New Lease – sometimes used if the old lease is outdated or you want to modernise terms.

Both must:

Be executed by the company as landlord and you as tenant.

Clearly state the new lease term (most people choose 999 years).

Reduce ground rent to a peppercorn (zero) — common for share-of-freehold flats.

Land Registry Application

Once signed and witnessed:

Submit to HM Land Registry with form AP1 to update the lease title.

Attach the deed and pay a small registration fee (usually £45–£95 depending on value).

The Land Registry will then update the leasehold title to show “Term: 999 years from [original date]”.

The freehold title remains unchanged

Legal Support

While this is more straightforward than a statutory lease extension, it’s still best to use a solicitor familiar with “share of freehold lease extensions.” They’ll ensure:

Proper execution on behalf of the freehold company (often two directors or one director and secretary sign).

Correct drafting language to avoid SDLT or lender problems.

Smooth Land Registry acceptance (no requisitions).