Why lease extension quotes vary so widely
Lease extension premiums are not fixed by law. They are calculated using a statutory formula that includes several assumptions — including a "deferment rate" and a "capitalisation rate" — where reasonable valuers can disagree.
In practice, this means two identical properties can receive very different quotes from different freeholders. A freeholder's opening figure is not a fact. It is a position, usually prepared by their surveyor, using assumptions that favour the freeholder's interests.
The variables that most influence your premium are:
Remaining lease term
The single biggest driver. A lease with 85 years remaining costs considerably less to extend than one with 65 years — and once a lease falls below 80 years, "marriage value" applies, which can substantially increase the premium. Many leaseholders are unaware of this threshold until they receive a quote that is much higher than expected.
Property value
Premiums are typically expressed as a percentage of the freehold value of the property. A £600,000 flat will usually attract a higher premium than a £200,000 flat with identical lease terms.
Location
London premiums are typically higher than regional premiums, reflecting both higher property values and different patterns in tribunal outcomes.
Ground rent
Leases with higher or escalating ground rents attract higher premiums, because the freeholder is giving up more income by granting a new lease.
Valuation assumptions
This is where freeholders have the most discretion. The deferment rate — essentially the rate at which future income is discounted — can legitimately range from around 4% to 6%. A lower deferment rate means a higher premium. Freeholders tend to use assumptions at the bottom of the accepted range.
Understanding that the quote is a starting position, not a fixed price, is the first step to evaluating it properly.
What does a typical lease extension cost?
Typical ranges vary significantly by lease length, property value and location. Broadly:
- London flats with 60–80 years remaining typically see premiums between 7% and 12% of property value — so £35,000–£60,000 on a £500,000 flat. Cases at tribunal have ranged from well below to well above this.
- Regional properties tend to attract lower premiums in absolute terms, though the percentage of property value is often similar.
- Sub-80-year leases attract marriage value, which can add materially to the premium. A 79-year lease may cost significantly more than an 81-year lease on an otherwise identical property.
For a deeper look at how the 80-year threshold affects the premium, see our guide to marriage value.
How most leaseholders try to check their quote — and why it often isn't enough
When you receive a lease extension quote, the natural instinct is to try to verify it. Most people try one of three things.
Searching online for typical costs
General ranges from property websites or articles can tell you that lease extension premiums "typically range from £5,000 to £100,000+." That is accurate but useless. It tells you nothing about whether your specific quote — for your specific property, lease length and location — is reasonable.
Using a lease extension calculator
This is where most leaseholders end up, and it is better than nothing. Free calculators — including the one provided by the Leasehold Advisory Service — allow you to enter your property details and get an estimated premium.
The problem is that these calculators use the same valuation assumptions your freeholder used. If you enter the same deferment rate and capitalisation rate as the freeholder's surveyor, you get the same number. If you use slightly different rates — which are equally defensible — you get a different number. You are comparing one estimate against another estimate.
Commissioning a surveyor
This is the right answer for many leaseholders — but it costs £500–£2,000, takes several weeks, and requires finding a specialist in leasehold valuation. Most people want to understand whether their quote is broadly reasonable before spending that money. A benchmark gives you that picture quickly and affordably.
What tribunal decisions actually tell us
When a lease extension premium cannot be agreed between a leaseholder and freeholder, either party can apply to the First-tier Tribunal (Property Chamber) to have the correct premium determined. The tribunal reviews the evidence, hears submissions from both sides' surveyors, and issues a reasoned decision.
These decisions are published. They are binding on the parties and they set precedents that influence how surveyors approach future cases.
Freeholders know what tribunals typically award. Their opening position is often materially above it.
How to benchmark your lease extension quote
LeaseIntel is built on a database of First-tier Tribunal decisions covering England and Wales, spanning more than twenty years. For each benchmark, we identify comparable cases matched by lease length, property value and location — and show you where your quoted premium sits relative to what those tribunals actually awarded.
Enter your details
Property value, remaining lease term and quoted premium.
We match cases
LeaseIntel identifies comparable First-tier Tribunal decisions.
See your position
Your quote positioned as Typical, Above Typical or Well Above Typical.
| Property value | £450,000 |
| Lease remaining | 65 years |
| Location | London |
| Freeholder quote | £52,000 |
| Typical tribunal range | £24,000 – £38,000 |
| Potential difference | £14,000 – £28,000 |
In this example, the freeholder's quote sits materially above the range typically observed in comparable tribunal decisions. A leaseholder who benchmarked before responding had grounds to negotiate — or to commission a surveyor to assess the premium independently.
LeaseIntel does not guarantee any outcome. But for a quoted premium of £52,000, understanding where it sits relative to tribunal outcomes is worth considerably more than £89.
Figures are illustrative. Your benchmark will reflect your specific property, lease length and location.
Check Your Quote Against Comparable Tribunal Decisions
Immediate benchmark report · Real tribunal outcomes, not formula estimates
Check My Quote — £89Not legal or financial advice · Independent benchmarking
What your LeaseIntel report includes
A LeaseIntel benchmark report is a structured analysis designed to give you the evidence you need to make an informed decision.
A clear position verdict
Your quote positioned as Typical, Above Typical, or Well Above Typical relative to comparable tribunal decisions. Plain English, no interpretation required.
The typical range
The range within which most comparable tribunal cases fell, alongside the median outcome — the midpoint of what tribunals actually awarded.
Comparable cases cited
The specific First-tier Tribunal decisions used to build your benchmark, with case references. You can look them up yourself or share them with a surveyor or solicitor.
A scatter plot
A visual showing where comparable cases sit and where your quote lands — immediately clear, even for someone with no leasehold experience.
A confidence level
A transparent indicator of how closely the comparable cases match your specific property. More matches means higher confidence; fewer means wider ranges.
Recommended next steps
Practical guidance on what the benchmark means for your situation — not legal advice, but a clear direction.
The full report is delivered as a downloadable PDF — for your records, or to share with a surveyor, solicitor or the freeholder.
Ready to check your quote? Enter your details and get your benchmark in under a minute.
When is a lease extension quote worth challenging?
A LeaseIntel benchmark tells you which category your quote falls into. What you do with that information depends on the result.
If your quote is within the typical tribunal range
It may reflect a reasonable valuation. You might still negotiate — freeholder opening positions are rarely their final position — but there is less evidence of material overpricing.
If your quote is above the typical range
There is a case for seeking independent professional advice before accepting. A RICS-qualified surveyor experienced in leasehold valuation can assess whether the premium is supportable on the specific valuation assumptions used.
If your quote is well above the typical range
The evidence base for negotiation or a formal counter-valuation is stronger. In many cases, leaseholders in this position serve a Section 42 Notice — the statutory notice that triggers a formal negotiation process — which locks in the valuation date and gives you legal protections.
Frequently asked questions
Know where your quote stands before you respond
Lease extension quotes are negotiable. Freeholder opening positions are rarely their final position, and leaseholders who understand where their quote sits relative to tribunal outcomes are better placed to negotiate, commission professional advice, or serve a formal notice.
A benchmark costs £89. Your quoted premium is probably tens of thousands of pounds. If it turns out your quote is within the typical range, you have confirmation that it may be reasonable. If it turns out to be well above the range, you have evidence worth acting on.
Either way, you make your next decision with better information than you had before.
Check My Quote — £89Independent · Not a valuation or legal advice · Tribunal outcomes, not formula estimates