The invention provides a system and method for lining a borehole. The system comprises: an expandable tubular element extending into the borehole, wherein an end portion of a wall of the expandable tubular element is bent radially outward and in axially reverse direction to define an expanded tubular section extending around an unexpanded tubular section; a pipe extending through the expanded tubular section; a connecting device for connecting the pipe to the unexpanded tubular section, the connecting device allowing the pipe to rotate relative to the unexpanded tubular section around a longitudinal axis of the pipe; a rotating device for rotating the pipe relative to the unexpanded tubular section around said longitudinal axis; and an actuator for moving the pipe in axial direction into the expanded tubular section to extend the expanded tubular section and thereby to form a liner of the borehole.