If you own a flat and also hold a share of the freehold, you might assume you don’t need to worry about extending your lease. This can be a common misconception. Even as a share of freeholder, your lease still has a fixed term and once it starts running down, it can affect your property’s value and saleability.
At The Lease Extension Company, we regularly help share of freeholders understand and manage this process. Here’s everything you need to know about share of freehold lease extensions, how they work and why they’re still an essential step in protecting your property investment.
What Is A Share Of Freehold?
A “share of freehold” means that the flat owners collectively own the freehold of the building, usually through a limited company or jointly as individuals. In most cases, each leaseholder owns:
🏠 Their flat on a long lease.
🏢 A share (or percentage) of the building’s freehold.
Although this arrangement gives leaseholders more control and reduces dependency on a third-party freeholder, it does not eliminate the lease itself. The lease still sets out the terms of ownership and when it gets shorter, it still reduces the property’s market value – even if you own part of the freehold.
Why You May Still Need To Extend Your Lease
Even as a share of freeholder, you need to extend your lease for the same reasons as any other leaseholder:
✅ To maintain your property’s market value.
✅ To avoid complications when selling or remortgaging.
✅ To prevent your lease term from dropping below 80 years (which triggers marriage value and increases costs).
The difference is that, as one of the freeholders, you and your co-freeholders have the power to grant yourselves new leases – but this still needs to be done correctly, through formal documentation and legal registration.
How To Carry Out A Share Of Freehold Lease Extension
Because you already own the freehold (or part of it), you don’t need to serve a statutory Section 42 Notice on yourself. Instead, you and the other freeholders can agree to grant new extended leases voluntarily.
The process typically involves:
1️⃣ Agreement among the freeholders – all co-freeholders must consent to the extensions.
2️⃣ Obtaining the legal acceptance from your mortgage lender required to execute your lease extension.
3️⃣ Legal drafting – a solicitor prepares new leases adding 90 years (or any agreed term) and reducing ground rent to zero.
4️⃣ Execution and registration – each new lease is signed, dated and registered at HM Land Registry.
Even though this can be simpler than a statutory lease extension, it must still be carried out properly to avoid legal or title issues later, especially if different flats have different lease lengths.
Advantages Of Extending As A Share Of Freehold
✔️ No premium to pay – you already own the freehold, so there’s no compensation due.
✔️ Flexibility – you can decide together how long to extend your leases.
✔️ Smoother conveyancing – buyers prefer consistency and long leases across all flats.
✔️ Future-proofing – prevents problems with mortgage lenders, valuation and resale.
By extending proactively, all owners maintain their property value and avoid last-minute complications when one leaseholder decides to sell.
How We Help
At The Lease Extension Company, we help share of freeholders through every stage of the process – from the moment you have agreement amongst leaseholders to extend your leases, we will over see the process using our specialist enfranchisement solicitors who will undertake your lease extensions and Land Registry requirements.
Our fixed-fee service ensures:
✅ A legally compliant process.
✅ Correctly drafted, registered leases.
✅ Professional coordination between all parties.
✅ Peace of mind that every detail is handled properly.
Whether your leases have 70 years remaining or 999, we’ll help you structure the extensions clearly and efficiently, protecting both your property’s value and your ownership rights within our fixed fee using our specialist solicitors.
Key Takeaway
Even if you own a share of the freehold, your lease still matters and allowing it to shorten can cause the same financial and legal issues as any other leaseholder. Extending your lease keeps your property secure, saleable and protected for the long term.
At The Lease Extension Company, we make the process simple, transparent and coordinated for all freeholders involved.
Speak with a Lease Extension Specialist Today
Arrange an appointment with our team of specialist lease extension experts and solicitors. We’ll help you identify the best route for you and your circumstances before you invest time and funds into this procedure.
Simply fill out our online Contact Form, send us an Email via [email protected] or call us for free on 0800 098 2770.
