Fixed fee, no hidden extras
At London and County, we have vast experience of undertaking valuations in respect of The Leasehold Reform, Housing and Urban Development Act 1993 as amended by the Housing Act 1996 and the Commonhold and Leasehold Reform Act 2002. From our offices in Central London, we cover the whole of the UK. The legislation gives owners of residential property the right to acquire an extended lease on their property or to collectively purchase the freehold interest in their building.
Do you need to extend your Lease?
Unlike freehold property, the value of leasehold residential property actually falls with the passage of time as the lease term reduces. This issue becomes increasingly pertinent as the lease term becomes shorter, as it becomes much more expensive to extend the lease when there are less than 80 years left to run on the lease. In addition, most mortgage lenders will not consider lending on a property with less than 80 years left on the term, as such this will have an obvious negative impact on its marketability and value should you wish to sell.
Thankfully, there is something that owners of leasehold residential property can do to protect their interest in the property. The Leasehold Reform, Housing and Urban Development Act 1993, as amended by the Housing Act 1996, and the Commonhold and Leasehold Reform Act 2002 gives owners of leasehold property the right to acquire a new lease for the remaining term of the existing lease plus a further term of 90 years AND reduce the ground rent to zero.
How do I extend my lease?
The process of extending the lease should always begin when the lease still has more than 82 years to run, or preferably even earlier. This ensures that all matters can be concluded in good time before the 80-year point when the process becomes much more costly.
We have developed a straight forward three-stage process which makes extending your lease easy and stress-free. The first stage requires an experienced Chartered Surveyor to undertake a detailed valuation which forms the basis of your negotiations with your freeholder. Invariably, your freeholder will instruct their own valuation in order to try and get the highest possible payment for the lease extension. The next stage involves detailed negotiations with your freeholder in order to arrive at a final figure.
Use our simple three-stage process
Stage 1 - Valuation
from £325 +VAT
Stage 2 - Negotiation
Stage 3 - Registration
The first stage in the process requires us to undertake a detailed valuation of the property. Our report provides the backbone for the entire process, as such, it is imperative that it is provided by an experienced Chartered Surveyor and RICS Registered Valuer. We may be able to prepare the valuation report without a physical inspection of the property. If this is possible, we will advise you accordingly and pass on a helpful cost-saving.
Stage 2 in the process requires us to prepare a notice under section 42 of the Leasehold Reform, Housing and Urban Development Act 1993 and serve it on your freeholder. They then have two months to respond with a counter offer. Once a counter offer is received, we will enter into detailed negotiations with the freeholder (or their professional advisers) in order to arrive at a fair and reasonable price to extend your lease.
The final stage in the process requires the instruction of an experienced property solicitor. You may use your own lawyer or we have teamed up with an experienced firm of solicitors who have vast experience in lease extension matters and also offer a very cost effective fixed fee. Whether you instruct your own solicitor or use our partner they will scrutinise the new lease and ensure it is properly registered with HM Land Registry.
How much will it cost to extend my lease?
Use this calculator to estimate how much it may cost to extend your lease. Please be aware that this calculator is designed to give you a rough indication, do not use these figures as a basis for negotiations with your freeholder as you could invalidate any notice you intend to serve under Section 42 of the Leasehold Reform, Housing and Urban Development Act 1993 (as amended).
In addition to your own professional fees, and the premium payable to extend your lease, you are also likely to be responsible for your freeholder's surveyor's and solicitor's fees. As a general rule of thumb, these costs should be around the same amount as your own professional fees. The level of your freeholder's professional fees forms part of our negotiations under stage 2 of our process. In the rare event that we do not agree on a premium for the lease extension, you are entitled to refer to the matter to the first tier of the property tribunal for determination, in this event we would charge an agreed fixed fee to attend the tribunal and represent your interest. You will not be required to pay your freeholder's tribunal costs.
Are there any other costs involved?