For leaseholders, a property with extended lease represents a secure family inheritance. Such properties are also more marketable as it can be difficult to secure a mortgage against a lease of less than 70 years.
From a freeholder's perspective the process enables them to realise value from their asset without surrendering the freehold.
Lease extensions do not require participation of other leaseholders in the building.
The terms of a lease extension may be agreed informally. Alternatively, qualifying leaseholders can compel the freeholder to grant a lease extension via the statutory process.
Whichever route is chosen, it is critical that both sides have an accurate valuation of the cost of lease extension.