Valulation charge for lease extension

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    Valulation charge for lease extension

    Is it normal for a free holder to charge a leaseholder or the person buying the lease/property for the cost of working out the cost of a lease extension on lower end priced properties.?

    The freeholder or company he has instructed wants to charge 650+vat. This is to find out what the cost ofthe extension by agreement will be. I thought it was all done by formulas. I know they have to get a accurate valuation but we are talking about a 65k flat with a current lease of 78 years and to bring the lease back up 99 years. Lots of similar flats in the local area and block so it isn't too hard to work out the value.

    Figures have been bandied around between 2k -14k by the F/H & current L/H. The question is, is it worth it to pay £780 on such a cheap property and take the risk it will be in the high end and reduce any rental yield.

    #2
    The legal right given to leaseholders (after 2 years ownership ) is for statutory 90 years lease extension at peppercorn ground rent and you can download the free guides from LEASE ( www.lease-advice.org )

    Any other term of extension is outside the statutory rules and freeholders can ask you for any terms they want .

    Do your due-dilligence first and get to know your legal rights.

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