Extending your lease can be an arduous and often complicated process. At Watsons we can take you through what’s involved, including the costs and can provide the right expert help so you can take charge of every step of your lease extension and avoid any common pitfalls.
How much will it cost me to extend my lease?
The cost of extending your lease depends on several things, including:
- The value of the property
- The number of years left on your lease
- The annual ground rent
- The value of improvements done to the property paid by the leaseholder
- External factors such as expected rate of returns on investments.
The lease extension valuation is a complex calculation, but is also open to negotiation.
While you can get an idea of the cost of buying up more years (referred to as the premium you have to pay to the freeholder for the extended years) approaching a valuation surveyor with experience of lease extensions is 100% worth the investment and prevent you from paying over the odds for your lease extension.
If you want to know how much your lease extension will cost, request an estimate today from our lease extension specialists!
On top of the cost of buying the extra years on your lease (the premium) you will also have to be prepared to pay:
- The costs of getting legal advice from your solicitor
- The lease extension valuation report from a valuation surveyor
- Your freeholder’s reasonable legal and own valuation costs (unfortunately, you are required by law to pay these)
- Land Registry fees
What are the steps to extending my lease?
- Step 1 – Inform the freeholder of your desire to extend your lease and that you will be pursuing the statutory route.
- Step 2 – Find a Valuation Surveyor, like Watsons who has expertise in leasehold extension legislation and great knowledge of the local property market. We can assist you and guide you through the following steps too…
- Step 3 – Appoint a Lease Extension Solicitor with expertise in the field and who is a member of the Association of Lease Extension Practitioners (ALEP). Obtain quotes and compare costs. Watsons can offer advice on what solicitor you should use.
- Step 4 – Make a formal offer. You will have to serve tenants’ notice – your solicitor will more than likely take care of this on your behalf but we can make an offer on your behalf.
- Step 5 – Pay the deposit if one is required by the landlord. This will either be £250, or 10% of the lease cost in the tenants’ notice, if that exceeds £250. If the landlord does require a deposit, this will usually need to be paid within 14 days, so it’s important to have capital ready for this expenditure.
- Step 6 – Negotiation of the final price for lease extension.
How long will it take to extend my lease?
The process normally takes anything from 3 to 12 months, but by using a valuation surveyor like Watsons, we can expediate the process using our expertise and knowledge.
For more information on Lease Extension Valuations, please contact out Customer Service Hub who can advise you accordingly on 0333 220 1234 or email: survey@watsons-property.co.uk
Where we Operate
Just find your local county page, and call the local number or call 0333 220 1234
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We are proud to be members of ALEP
Association of Leasehold Enfranchisement Practitioners.
