| The
cost of the Lease extension will depend on a number of factors
including the value of the ground rent income, the value of
the Freeholders reversion at the end of the lease and the
‘marriage value’ i.e. the amount that the value
of the flat increases when the Lease is extended. The Lessee
will also pay the Freeholders legal costs, valuation costs
and Stamp Duty.
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You are likely to need a surveyor's valuation
to get an idea of how much extending your lease might cost.
It is almost impossible to work out a fixed price, so most
surveyors will give you a high and low price. The final price
should be somewhere in between. If you can't agree a price,
a leasehold valuation tribunal (LVT) can set one.
Y ou will also have to pay all the solicitors'
and surveyors' fees involved - for both yourself and the freeholder
- which can be quite expensive.
After your lease has been extended, you will
no longer have to pay ground rent. It will probably still
be mentioned in your lease, but will be called a peppercorn
rent, which means there is nothing to pay.
The Leasehold Reform, Housing and Urban Development
Act 1993 (as amended) introduced the right for qualifying
leaseholders of flats to acquire a 90 year lease extension
on payment of a premium.
The basic criteria for qualification are that
your original lease should be a long lease at a low rent and
that you should have been the leaseholder for at least 2 years
at the time of your application for an extension.
To make a claim, a formal Notice of Claim must be served on
the Estate - your solicitor will be able to do this for you.
You may need to take valuation advice, as the Notice must
state the premium you offer for the extension.
Our solicitors will ascertain whether the Claim is valid.
If it is, our valuers will carry out their own valuation and
will then negotiate a settlement figure with you or your valuer.
When this is agreed, the new lease will be granted.
It cannot be given any prior indication of how much the premium
will be. This depends on a variety of factors, including the
date the Notice is served, the market value of the flat and
the state of the residential market as at the valuation date.
You must take your own advice on values.
You should also note that the Estate's legal
and valuation costs in connection with the lease extension
process are payable by the claimant.
What
is a Lease? |
Are
There Different Types of Leases? |
Extending
a residential lease |
How
do I extend the lease?|
How
much will it cost? | Lease
Extension |
Car
and Vehicle Leasing |
Example
of Lease Agreement |
Extension
of Short Leases on Central London Properties |
Rental
Challenges |
