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You can use our lease extension calculator to find an estimate of your extension premium fees. Your solicitor will determine the final cost through multiple aspects. This includes the complexity of the case, the property location, and the length of the proposed lease extension.
It’s important to note that the more complex your case is, the more expensive your premium is likely to be.
The average lease extension premium cost is between £7,000 and £10,000. This figure does not include any additional costs. The total amount is dependent on various factors.
Extra costs are likely when dealing with lease extensions due to the amount of paperwork and negotiating involved. Complex cases will incur higher costs. Therefore, it’s best to keep this in mind before instructing your solicitor and proceeding with the process.
Here are some extra costs to keep in mind:
You will need to hire a specialist surveyor to provide an accurate market valuation. Costing between £600 and £900 on average, they will calculate a valuation with and without the lease extension.
Your solicitor will either charge an hourly rate or a fixed fee. Conveyancing fees cost an average of £600 to £1,200. This covers the cost of submitting a Section 42 on your behalf and advising you on the Section 45 notice that the freeholder will send in response.
Leaseholders are required to cover freeholder’s costs due to The Leasehold Reform Act. This means that you will be responsible for paying their solicitor and surveying fees. Bear in mind that your freeholder may not choose the cheapest firms as they know you will be covering the cost.
The lease extension process can take around 3 to 12 months. It is highly recommended that you hire a specialist lease extension solicitor to guide you through the process.
The process begins with a valuation that must be carried out by a regulated surveyor. Once this has been established, your solicitor will then negotiate with the freeholder’s solicitor. In instances when an agreement cannot be made, your solicitor will issue a Section 42 “Tenant’s Notice” to the freeholder. The freeholder will then have 2 months to respond to this notice.
Following this, your solicitor will submit the appropriate documentation, including a new lease. This is then signed by both parties and the new lease will be registered with the Land Registry.
Conveyancing fees can be costly, especially in complex cases. Therefore, finding the right conveyancer is crucial. You can ask your estate agent for any recommendations. However, they may receive a referral fee.
Here are some tips to save money and ensure you get the best service:
You can use our lease extension calculator for a cost estimate. This provides you with an idea of what to expect when you receive your fees.
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This calculator is for initial consideration purposes only and it cannot give you a definitive figure, merely an indicative value range.
The calculator will give you a general estimate of the premium for a lease extension for a flat. It is based on data available on a national level and does not take into account local factors that may impact the premium. It cannot do calculations for leases with less than 50 years remaining (40 years for flats in Central London).
In considering the likely total cost, you should also bear in mind the leaseholder's liability for the landlord's costs. The eventual cost of the new lease will be the premium plus both your own and the landlord's "reasonable" professional costs. Stamp Duty is also applicable above £125,000. These costs could be significant, so be sure to get estimates from the professionals involved before you decide to proceed.
The estimate is likely to be helpful where there is no evidence of comparable transactions. Whether another transaction is comparable for these purposes is always determined on a case-by-case basis.
The estimate produced by the calculator should not be treated as a formal or professional valuation and is not a substitute for obtaining such a professional valuation. You should not take any action in reliance on the estimate without seeking formal advice from a surveyor, property lawyer or other qualified professional first.
You should not use the estimate in tribunal or court proceedings and neither should you take any other action based on this information without first seeking professional advice.
To the maximum extent permitted by law, we shall not be liable for any loss, injury, claim, liability or damage of any kind resulting from, arising out of or in any way related to reliance on the estimate produced by this calculator.
Although we offer an advice guide, Lease extension - Valuation about valuations under the Leasehold Reform, Housing and Urban Development Act 1993 (as amended), you should remember that the law and the way property is valued can change over time and that local evidence can vary.
The current priority, when assessing the short lease value, is evidence of similar flats usually in the same block or estate. Where reliable comparable sales of similar short leases can be found, that will be a better indicator and this requires extensive local knowledge beyond the scope of this national calculator. Where there is no clear evidence of short lease sale transactions, a graph approach is likely to be adopted.
The following areas are considered as Prime Central London (PCL): Knightsbridge, Belgravia, Mayfair, Chelsea, Kensington/Holland Park, South Kensington, Regent's Park, Notting Hill, St John's Wood and Marylebone. Views on what constitutes PCL are subjective, but we have identified these areas as those most commonly considered to constitute PCL.
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