Lease extension premium calculater

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    Lease extension premium calculater

    I am starting the process of extending my lease on my maisonette to 120 years. It has 80 years remaining. I have had the valuation done and the landlord has come back with the cost being £15,000 plus costs. I am wondering how this number was calculated and if there is an official mathematic way that the calculation is made, as I have not been given any breakdown from my landlord of how this cost was reached? Many thanks in advance.

    #2
    What is the value of your property and annual ground rent ? Did your lease start at 99 years or 125 years term ?

    Leaseholders have a legal right to seek a statutory 90 years extension at peppercorn ground rent which will give you 80 + 90 years = 170 years lease at Nil Ground rent.

    There is a free guide to "statutory lease extension" and "valuation of cost for statutory lease extension" at www.lease-advice.org . This website has a calculator for cost of statutory lease extension.

    If you ask for a new lease for 120 years which is "non statutory extension" , there are no rules for non-statutory extension and the cost can be "any price plus higher ground rent" is often demanded by freeholder .

    Application for lease extension below 80 years will cost more because the compensation formula will be increased by the marriage value. If you and freeholder cannot agree on the cost , you can apply to the FTT to set the cost of lease extension.

    The Housing Minister on 7 Jan 2021 announced the intention to reform the leasehold system which may include removing the "marriage value". This reform is expected in 2 years time but government intentions may not always happen.

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