Waiting Too Long

One of the biggest mistakes is delay.
Once a lease drops below 80 years, marriage value becomes payable. This can significantly increase the lease extension premium.
The shorter the lease, the more expensive it usually becomes.
Even if you are not planning to sell, taking early advice gives you options.

Assuming a Lease Extension Is a Standard Valuation

A lease extension valuation is not the same as a market appraisal.
It involves statutory assumptions, capitalisation rates, deferment rates, relativity and tribunal precedent.
Using a surveyor who does not specialise in leasehold reform can result in:

• An unrealistic notice figure
• Weak negotiation strategy
• Overpaying the premium

Leasehold reform valuation is a niche area for a reason.

Serving a Notice Without Proper Valuation Advice

The figure inserted into a Section 42 Notice is important. It sets the starting point for negotiations and influences the tone of the case.
Submitting a figure without professional advice can:

• Undermine your credibility
• Lead to tactical disadvantage
• Create unnecessary dispute

Good preparation at the start often leads to smoother negotiations later.

Ignoring Deadlines

The statutory lease extension process is time-sensitive.
There are strict deadlines following service of the Section 42 Notice and the freeholder’s Counter Notice.
Missing deadlines can result in:

• The notice being deemed withdrawn
• Financial penalties
• Waiting 12 months before serving again

Professional guidance helps ensure the timetable is properly managed.

Not Using a Specialist Lease Extension Solicitor

Lease extension law is technical and highly procedural. It is not standard conveyancing.
Using a solicitor who does not regularly deal with leasehold reform can lead to:

• Errors in the Section 42 Notice
• Missed statutory deadlines
• Delays that increase costs
• Unfavourable lease drafting

If a notice is deemed withdrawn due to a missed deadline, you may have to wait 12 months before serving again often at a higher premium.
As with valuation, legal expertise in this niche area really does matter.

Not Budgeting for the Full Costs

In addition to the premium, leaseholders are usually responsible for:

• Their own legal and valuation fees
• The freeholder’s reasonable legal and valuation costs

Understanding the full cost picture from the outset avoids unpleasant surprises.

Trying to Negotiate Directly Without Advice

Informal negotiations can sometimes seem quicker.
However, informal deals may:

• Retain ground rent
• Include less favourable terms
• Fail to add the full statutory 90 years

The statutory route provides certainty and protection. Advice at the outset allows you to compare options properly.