There are ways for you to estimate the premium (price) of extending your lease, but it is best to get a valuation from a qualified surveyor who specialises in this area.
This is because the valuer – ideally a valuation surveyor who knows your local property market well and is experienced with this area of the law – can play an important role in the sometimes tricky process of extending a lease.
In addition to carrying out a valuation, they can:
- give advice on your offer to the landlord and you response to a counter-offer
- negotiate with the landlord for you
- give expert evidence at a tribunal if you cannot agree a price with the landlord
It is best to get advice before making any offer to your landlord. The premium is not the only cost involved; you will also have to pay the landlord’s ‘reasonable’ costs, as well as your own.
Making an estimate
You can use our Lease Extension Calculator to get a general estimate of the premium.
This is based on compensating the landlord for:
- adding time until the property ‘reverts’ to them – to do with the property value and the years left on the lease
- loss of ground rent when you extend – to do with years left on the lease
- any added value an extension gives to the property if there is less than 80 years on the lease – the ‘marriage value’.
- The calculator does not take local market conditions into account and is not a substitute for professional advice.
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More information you might find useful:
- Valuation for Leasehold Extension: advice guide
- Lease Extension Calculator
- Should I negotiate a lease extension with the freeholder?: FAQ
- What are the costs of extending my lease?: FAQ
- More Frequently Asked Questions on Lease Extension
Still not found the answer?
Contact LEASE to have your enquiry dealt with by one of our experienced advisers
