Sussex Lease Extensions Blog

How much do Lease Extensions Cost?

Are you aware of the unexpired term left on your lease? Losing track of the length of your lease could land you with a bill for thousands of pounds. The sooner you can extend the better, saving you money and stress further down the line.

The cost of extending the lease will depend on a number of variables, the top three contributing factors being:

• The value of your property
• Your annual ground rent
• The number of years remaining on the lease

The cost of a lease extension increases dramatically as the number of years unexpired shortens. Leases with less than 80 years left on them become much more expensive to extend – and this is exactly what freeholders hope for.

Once a lease has dropped below 80 years unexpired the cost of the lease extension increases significantly as marriage value becomes payable. Marriage value is the extra value created by extending a lease the lease extension will add to your property, on top of the cost of extending the lease itself. If your lease extension has around 85 years left, it is time to start researching what you can do to minimise the financial impact of extending.

In addition to the premium you will have to pay the freeholder for the lease extension, there are a number of fees payable as part of the process which include:

• Your own Legal fees and Valuation fees.
• Freeholders Legal and Valuation fees which are recoverable under the legislation. These however are limited to the freeholder’s valuation fee and legal fees of dealing with the Notice and Counter Notice and drafting work of the new lease.
• Tribunal costs should an agreement not be reached. You will have to bear the costs of your professional advisors preparing for and attending a tribunal hearing. Such cases are however fairly rare particularly as freeholders cannot recover any of their costs from the leaseholder.

To give you a very rough idea of the cost of extending your lease, there are some on line calculators. Try this one from the Leasehold Advisory Service.

When applying for lease extensions you should always seek expert valuation and legal advice, on how to proceed. If you would like more information speak to the experts at Sussex Lease Extensions by calling us now on 01903 872 211.

This entry was posted on Wednesday, September 11th, 2013 at 11:30 am and is filed under Lease Extension Advice, Lease extensions, Statutory Lease Extensions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.