If you own a flat with a share of freehold, here’s the good news: extending your lease is usually simpler, quicker and considerably cheaper than it is for leaseholders with an external freeholder. In most cases there’s no premium to pay at all. It still needs to be done properly, with the right documents and the right registration, but with a little preparation it is one of the most straightforward pieces of property admin you’ll ever do. This guide explains what share of freehold means for your lease, why extending is such good value for share of freeholders, and exactly how the process works, step by step.
What share of freehold means for extending your lease
Share of freehold means you own two things. You own your flat on a lease, and you also own a share of the freehold of the building it sits in. That share is held in one of two ways: for smaller buildings, typically converted houses with two to four flats, the freehold is usually registered in the individual names of the flat owners; for larger blocks, it is usually held by a freehold company in which each flat owner holds a share.
Here’s the point that surprises many people: owning a share of freehold does not do away with your lease. Your flat is still held on a lease, that lease still gets shorter every year, and mortgage lenders and buyers still look closely at the remaining term when you come to remortgage or sell. So share of freeholders still need to extend their leases. The difference, and it’s a significant one, is that you’re effectively on both sides of the transaction. You and your fellow flat owners are the freeholder, which changes everything about the cost and the process.
The benefits of extending as a share of freeholder
You don’t pay a premium to yourself. For most leaseholders, the biggest cost of a lease extension is the premium, the sum paid to the freeholder. When you and your fellow freeholders own the freehold, charging each other a premium makes little sense, because every flat in the building benefits from long leases. In practice, share of freehold lease extensions are almost always granted for a nominal “peppercorn” consideration, which is a legal way of saying a token amount, effectively nothing. The key consideration here is that your co-freeholders must be in agreement on the terms of the lease extension the price to be paid or not, and the length of the extension term. The agreed terms need to be agreed by all parties before you start your lease extension.
No statutory notices, valuers or tribunals. Because you’re extending by agreement, there’s usually no need for the formal statutory machinery: no notices to serve, no valuations to commission and negotiate. The statutory route under the Leasehold Reform, Housing and Urban Development Act 1993 still exists as a safety net if agreement can’t be reached, but for share of freeholders it is the fallback, not the plan.
Better terms, agreed between the freehold group. Extending by agreement means you and your fellow freeholders set the terms. Extensions are commonly granted for very long terms, often 999 years, with the ground rent set at a peppercorn, so neither you nor any future owner of your flat needs to think about it again.
The cost is legal and administrative only. With no premium and no valuation, what remains is the legal work: drafting, signatures, mortgage lender legal consent and Land Registry registration. That makes the whole exercise a small fraction of the cost of a conventional lease extension, and it protects the value and mortgageability of every flat that participates in the building.
It doesn’t need to be a nightmare: how to prepare properly
Search for “share of freehold nightmare” and you’ll find some worried threads online. Read them closely, though, and nearly all of the stories trace back to two avoidable things: flat owners who never put an agreement in place with each other, and legal work done without a specialist.
Both are simple to get right.
Agree in principle with your fellow freeholders first. Before any documents are drafted, confirm with your co-freeholders (or the freehold company) that the extensions will be granted, and on what basis, usually with no premium. This is rarely a difficult conversation, because every owner benefits and most buildings extend reciprocally: you all agree to sign for each other. Where the freehold is held by a company, it’s also worth agreeing whether all flats will extend together on identical terms, which keeps the building’s paperwork consistent and is generally considered best practice.
Use an experienced specialist solicitor. Share of freehold extensions are not complicated, but they are precise. The documents must be drafted correctly, everyone who needs to sign must sign, and the new lease must be properly registered. Undertaken by a lease extension specialist solicitor, this is routine. Undertaken by a non specialist casually, mistakes can leave an extension ineffective or cause title defects that only surface when you try to sell. The right solicitor is the difference between a smooth piece of admin and one of those online horror stories.
With those two things in place, an agreement and a specialist, there is no nightmare. Just a process.
How the process works, step by step
1. Agreement in principle. Confirm with your co-freeholders, or the freehold company, that the lease extensions will be granted and that no premium will be charged.
2. Check the Articles of Association (company-owned freeholds only). The company’s Articles set out what approvals are needed to grant the extension, such as a board resolution, a shareholder resolution, or both.
3. Instruct a share of freehold lease extension specialist solicitor to draft the deed of variation or new lease. Where several flats are extending at once, the documents should be prepared on identical terms.
4. Ensure your specialist solicitor can obtain your mortgage lender’s consent, if your flat is mortgaged. The lender must legally consent to the new lease and sign the documentation. Some lenders charge a modest administration fee for this, which is worth budgeting for.
5. Execution. The documents are signed by all the freeholders (or by two directors or authorised signatories on behalf of the freehold company) and by the leaseholder.
6. Registration at HM Land Registry. The new lease is registered, and any mortgage is re-registered against it. This final step is essential: it is what makes the extension legally effective on your title.
For a small converted building with the freehold in personal names, that’s the whole journey: an agreement between fellow freeholders, properly documented. For larger blocks with a freehold company, the same steps apply with the company’s approval procedures layered in. And usefully, not every flat has to take part at once. Provided the company’s Articles are followed, extensions can be granted to some flats and not others, although extending together keeps everything uniform.
The legal work and Land Registry
Even with no premium and no statutory process, the legal work is what makes your extension real, so it’s worth understanding what it involves.
The final piece is registration at HM Land Registry. The new lease must be registered against your title, and any mortgage re-registered against the new lease. Skipping or fumbling this stage is where problems can arise: an unregistered extension can be ineffective, and defects in the title are exactly the kind of thing a buyer’s solicitor will find at the worst possible moment. Handled properly, registration is routine, and once it’s done your extended lease is simply a fact of your title, there for good.
You can read more about leasehold ownership generally in the Government’s leasehold guidance.
How we make it simple and stress-free
The Lease Extension Company exists to take the whole process off your plate. Here’s what that looks like for share of freehold extensions:
-
Specialist legal work, without the search. We refer your extension to our curated panel of the country’s leading specialist lease extension solicitors, so the documents are right first time and consistent across every flat that’s extending.
-
One fixed fee, agreed upfront. You’ll know the cost before you commit. Our fee is genuinely fixed, and with no premium to pay, the fixed fee is essentially the whole cost of the exercise apart from any lender administration fee.
-
Everything managed for you. Our client service team coordinates each step, from lender consent through to Land Registry registration, keeps every party moving, and keeps you informed throughout. If your building has several flats extending at once, we coordinate them together on identical terms.
Whether you’re one of three owners in a converted house or part of a larger block with a freehold company, the process is the same for you: one conversation to get started, then we handle it. Get in touch for a fixed-fee quote.
FAQs
What does share of freehold mean?
It means you own your flat on a lease and also own a share of the building’s freehold, either jointly in your own names (common in converted houses with up to four flats) or through shares in a freehold company (common in larger blocks). You’re both a leaseholder and, collectively with your fellow share of freeholders, the freeholder.
Do I still need to extend my lease if I have a share of freehold?
Yes. Your flat is still held on a lease, and that lease shortens every year regardless of who owns the freehold. Lenders and buyers look at the remaining term, so keeping the lease long protects your flat’s value and saleability. The good news is that extending is far simpler and cheaper for you than for most leaseholders.
Do I have to pay a premium?
Usually not. Because all the flat owners benefit from long leases, share of freehold extensions are generally granted for a peppercorn, a nominal consideration, rather than a premium as long as you are all in agreement and define the costs and length of the lease extensions.
Is extending a share of freehold lease a nightmare?
No. The horror stories you may have read almost always come down to poor preparation: no agreement between the flat owners, or legal work done without a specialist. With an agreement in principle and an experienced specialist solicitor, it’s a straightforward, well-trodden process with no premium, no valuers and no risk of tribunal.
What if my fellow freeholders won’t agree?
It’s rare, because extending benefits everyone, but if agreement genuinely can’t be reached you still have the statutory right to extend under the 1993 Act, just like any qualifying leaseholder. That route involves a premium and a formal process. You can work out your estimated premium with our calculator, and our guide on how to extend your lease explains the statutory route step by step.
Do all the flats have to extend at the same time?
No. Provided the freehold company’s Articles are followed, extensions can be granted to some flats and not others. That said, extending together on identical terms is best practice: it keeps the building’s titles consistent and is usually more cost-effective for everyone.
Does my mortgage lender need to be involved?
Yes. If your flat is mortgaged, your lender must provide their legal consent to the extension and their charge is re-registered against the new lease. Some lenders charge a small administration fee for this.
How much does a share of freehold lease extension cost?
With no premium to pay, the cost is essentially the legal and administrative work: drafting, execution, lender consent and Land Registry registration. We handle all of it for a genuinely fixed fee. See our fixed-fee lease extension page, and you’ll find more answers on our FAQs page.
Ready to extend your lease?
If you own a share of freehold, you’re in the best position a leaseholder can be in: a long lease is yours for the cost of the paperwork. The sensible move is to sort it on your own timetable, before a sale or remortgage turns it into a deadline.
We’ll confirm the right route for your building, handle the legal work through our panel of leading specialist solicitors, and manage everything through to Land Registry registration for one fixed fee. Get in touch for a fixed-fee quote tailored to your building.
This article is for general information and is not legal advice. Every lease and every building is different, so for advice on your specific situation, speak to our team.
