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We can help with lease extensions

Shared Ownership lease extensions

Your lease will be a standard Homes and Communities Agency (formerly Housing Corporation) model Shared Ownership lease. These were first issued in the late seventies. Many of these leases would have been issued for a term of 99 years and the remaining term on your lease may have diminished significantly. This is known as being “short”. Many leaseholders will already be aware that when a lease becomes “short” its value reduces. There is of course no exact time when a lease is classed as “short” but generally it is thought to be that way when a lease falls below 80 years. A “short” lease may create difficulties for a leaseholder if they wish to sell or remortgage.

Download our guide to lease extensions here:

Lease extensions

Qualification for extending a lease

In order for a leaseholder to be able to claim the right to a leasehold extension, they must satisfy certain conditions:

  • The existing lease must be for a term exceeding 21 years. There is no requirement that any particular period remains unexpired. A tenancy with a covenant providing for perpetual renewal is deemed a qualifying lease for these purposes.
  • Leaseholders need to have owned the property for two years and any leaseholder who has owned it for less doesn’t have an automatic right to extend.

My lease is short – what can I do?

A leaseholder who satisfies certain conditions has a “right” to be granted a new lease for an additional term of 90 years at a peppercorn rent. A Shared Ownership leaseholder can also have their lease extended, however they will continue to pay the rent on the unsold share in the same way as this is a fundamental clause of the lease.
There are two routes by which you can extend the lease and you must speak with your legal advisor for the best option for you before proceeding:

  • Informal (For Outright and Shared Ownership Leaseholders) – This is offered by Family Mosaic; it may be quicker and less costly in terms of legal fees. To proceed under this route you need to complete the informal procedure form and send this back to the Resident Sales Team at Family Mosaic so that we can instruct the valuer on your behalf.
  • Formal (For Outright Leaseholders only) – This is prescribed by law; to proceed by this route you will need to serve a statutory notice under section 42 of the Leasehold Reform Act 1993. This should be sent to the Resident Sales Team at Family Mosaic by email at resident.sales@ who will record this and forward you our solicitor’s details so that the formal process can commence. Whether or not a leaseholder satisfies the conditions for the formal procedure does not prevent a leaseholder from trying to agree terms informally with their landlord. There are advantages and disadvantages of proceeding informally or formally which will need to be discussed in all cases with your legal advisors.

The Next Steps - Applying for a Lease Extension

To begin proceedings in applying for a lease extension, you will need to contact our resident sales team by email to We aim to respond within 48 hours of your inital enquiry where we will first check:

  • No arrears are outstanding on the leaseholders account
  • Ensure the leaseholder has lived in the property over 2 years
  • Check the percentage the leaseholder owns in the property
  • Check the lease

Once these checks have been made, the resident sales team will send out an application pack to you with further information within 48 hours of your initial enquiry.

What costs are involved?

The up-front costs involved in a lease extension will depend on the lease you currently hold and the procedure you wish to follow (all figures are approximate based on a standard lease; if matters are particularly protracted further legal costs may be incurred):

Informal procedure: 

Family Mosaic administration fee: £190 plus VAT

Valuation fee: £300 – £375 plus VAT

Family Mosaic solicitors costs for a standard lease extension: £450 – £550 plus VAT 

Family Mosaic solicitors costs for a property with a Head Lease: £700 – £950 plus VAT 


Formal procedure: 

Family Mosaic administration fee: £190 plus VAT 

Your lease extension valuation: This will depend on the valuer you appoint. 

Family Mosaic valuation fee: £300 – £625 plus VAT 

Deposit to Family Mosaic of £250 or 10% of the lease extension value, whichever is greater 

Family Mosaic solicitors for a standard lease extension: £450 – £550 plus VAT 

Family Mosaic solicitors costs for a property with a Head Lease: £700 – £950 plus VAT