Informal vs statutory lease extension: which route?

Informal (voluntary) route in plain English

An informal lease extension is a negotiated agreement between you and your landlord (or freeholder). There is no automatic legal duty on the landlord to offer an extension, accept your proposed premium, or match the terms that would apply under a statutory claim. Progress depends on willingness to deal and on what both sides put in writing.

That flexibility can be useful. You and the landlord may agree a different term length, a different ground-rent arrangement, or a faster conveyancing timetable than a formal claim. You can also walk away if the offer looks poor — but so can the landlord. There are no built-in statutory response deadlines for an informal chat, and weaker procedural protections if talks stall or the deal changes late.

LEASE’s getting-started guidance treats informal and formal routes as distinct options for flat leaseholders. Before you treat any informal offer as “done”, ask a solicitor to compare the whole proposed new lease — not only the headline premium — against what a statutory claim would typically deliver.

Overview: LEASE — getting started (flats); high-level rights context: GOV.UK — extending, changing or ending a lease.

Formal (statutory) route in plain English

The formal route for qualifying flat leaseholders in England and Wales sits under the Leasehold Reform, Housing and Urban Development Act 1993. In broad terms, a qualifying leaseholder can claim a statutory extension once eligibility and ownership tests are met. LEASE and GOV.UK describe the familiar outcome as adding 90 years to the remaining term with ground rent reduced to a peppercorn, subject to the rules in force on your notice date.

The claim usually starts when your solicitor serves a Section 42 notice on the correct landlord interests. That notice triggers statutory stages: the landlord’s counter-notice, negotiation of the premium and terms, and — if agreement cannot be reached — application to the appropriate tribunal. Serving notice is a legal step with cost and timing consequences; it is not a soft enquiry.

This page is a route-comparison guide only. For the step sequence, read how the formal lease extension process works. For eligibility framing before any notice, LEASE’s “before you start” formal-route guide stresses instructing the right advisers first.

Advisers before Section 42: LEASE — formal route, before you start. Process overview on this site: how it works.

Side-by-side: what actually differs

Use the table as a planning aid, not as a substitute for advice on your lease. Outcomes still depend on eligibility, the lease, and the rules in force when you act.

For how premium, fees and short-lease issues fit together, read the lease extension cost breakdown. If you are at or near 80 years remaining, also see marriage value and the 80-year threshold. Neither page quotes a figure for your flat.

Formal-route cost framing: LEASE — formal route costs and help.

When informal can make sense — and when it is risky

Informal can make sense when the landlord is cooperative, the lease position is straightforward, you have time to negotiate, and a solicitor has checked that the offered terms are at least as good as a statutory outcome on the points that matter (term, ground rent, other clauses). Speed and flexibility are real benefits when both sides want a clean deal.

Informal is riskier when the remaining term is short, you face a hard sale or remortgage deadline, the landlord will not engage, or the informal draft keeps an onerous ground rent or other unfavourable terms. In those cases the absence of a statutory clock and dispute path can leave you waiting with no leverage. Many leaseholders explore informal first, then move to a formal Section 42 claim if talks stall — switching is common, but the timing of any notice should be advised by your solicitor and valuer, especially around the 80-year threshold.

Reform caveat: the Leasehold and Freehold Reform Act 2024 includes planned changes to the lease-extension regime. Commencement and practical effect are not fully settled. Re-check GOV.UK and LEASE before acting, and ask your advisers which rules apply on your notice date. This page does not speculate on future rates or commencement dates.

How the calculator fits either route

An online estimator can illustrate how remaining term, ground rent and property value affect a simplified premium picture. Both LEASE and Lease Extension Pro treat calculator outputs as a guide — not a negotiated figure and not a number to put on a Section 42 notice.

Whether you pursue informal talks or a formal claim, use the lease extension calculator to explore sensitivity, then instruct a specialist enfranchisement valuer before you commit to a price or a notice. At 80 years or fewer remaining, this site withholds a full premium illustration because marriage value and relativity need case-specific assessment.

A calculator does not replace legal advice before serving notice. It cannot confirm eligibility, choose your route, or protect a statutory deadline.

Practical next steps

Before you choose a route:

• Confirm the unexpired term on your lease and, where needed, the Land Registry title.
• Decide whether you need a specialist valuation before any informal offer is accepted or any Section 42 notice is served.
• Ask a solicitor which route fits your timing, eligibility and risk tolerance — and what happens if informal talks fail.
• Budget for premium and professional costs; on a formal claim, LEASE explains that certain landlord costs can fall on the leaseholder.

For questions to ask when instructing help, use our lease extension solicitors checklist — not as a directory of recommended firms. LEASE also points leaseholders to independent ways of finding solicitors.

Finding legal help: LEASE — using a solicitor.

Common questions