A lease is your right to use a property for a specified period of time. As your lease gets shorter, the value of your property decreases and it can become difficult to mortgage or sell on. This is why it is a good idea to extend your lease.
Extending a lease by the statutory path or by negotiation can be a lengthy process so it pays to seek advice early. Both routes have their pros and cons whether you are a lease-holder or a free-holder so it pays to seek advice early.
By engaging Watsons to extend your lease, you will be securing your long-term residency and adding value to your property. If you are considering a lease extension, it is worth investing at the earliest opportunity.
How much will it cost me?
It depends on the value of the property, the number of years left on the lease, the annual ground rent, the value of improvements done to the property paid by the leaseholder and external factors such as expected rate of returns on investments. It is a complex calculation, but also a subjective one. Like trying to define the value of a house, there is not necessarily a “right” answer to the value of a lease extension, which means it will be subject to negotiation – or decision by a tribunal.
Can I calculate myself?
You can get a rough idea of how much it will cost using an online lease extension calculator, but unless the amount is below a few thousand pounds, it is worth paying a Chartered Valuation Surveyor to calculate it for you. This can cost a few hundred pounds but will probably save you from paying over the odds and will provide you with peace of mind that you have a correct price.
What other costs do I have to pay?
How long will the process take?
The process normally takes from 3 to 12 months, and it can be made quicker by efficient valuers, solicitors and other professional help, so choose these people wisely.
Is it worth trying to buy the freehold instead?
It could be worth buying the freehold on your home so that you own it outright. However, there could be complicated legal procedures and legal costs involved in this process and you will have to get over half of all the leaseholders to agree.