Lease Extension Calculator 2026/27

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Lease Extension Premium Calculator

✓ 2026/27 Leasehold Valuation Model

Lease & Property Details

£
The value of the property with a 999-year lease or share of freehold.
Years
Marriage value applies if remaining term is under 80 years.
£
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%
Rate used to value ground rent income. Usually 5.0% - 7.0%.
%
Standard rate is 5.0% for flats (Sportelli ruling), 4.75% for houses.
£
Includes your own and the freeholder's legal/valuation costs.
Estimated Premium
£15,000
payable to landlord
Total Cost
£18,000
including professional fees
Estimated Relativity
91.50%
short vs freehold value
Marriage Value Status
Applicable
under 80 years remaining

Premium Breakdown

Ground Rent Capitalisation £2,450
Loss of Reversion £6,350
Landlord's Marriage Share £6,200
Legal & Surveyor Fees £3,000
Total Outlay £18,000
Rent & Reversion 59%
Marriage Value 41%
🛡️
Verified for Accuracy (2026/27 Tax Year)
Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.
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How We Calculated This

  1. Input variables: Enter the relevant amounts, rates, or percentages in the form.
  2. Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
  3. Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.
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With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.
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Frequently Asked Questions

Why should I extend my property lease and when is the best time?

A leasehold property gives you the right to occupy a property for a fixed term, after which ownership reverts to the freeholder. As the lease gets shorter, the property’s market value decreases, and it becomes increasingly difficult to secure a mortgage. The critical threshold for lease extensions is 80 years. If the remaining term falls below 80 years, the cost to extend the lease increases dramatically. This is because lenders and freeholders include ‘marriage value’ (the increase in the property’s value when the lease is extended) in the pricing, and by law, you must pay the freeholder 50% of this marriage value to secure the extension. Therefore, you should always aim to extend your lease before it reaches the 80-year mark.

What is the statutory lease extension process in the UK?

Under the Leasehold Reform, Housing and Urban Development Act 1993, flat owners have a legal right to a statutory lease extension once they have owned the property for at least two consecutive years. This statutory route grants you an additional 90 years on top of your current remaining lease term and reduces your ground rent to a ‘peppercorn’ (meaning zero ground rent for the rest of the term). The process involves hiring a specialist leasehold surveyor to value the premium, serving a Section 42 Tenant’s Notice to the landlord, and negotiating the final price. Alternatively, you can negotiate an informal lease extension directly with the freeholder, but this lacks statutory protections and may keep ground rent clauses in place.

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