FAQs

How much does it cost?

The cost of extending your lease depends on the value of the flat and the number of years left to run on the lease.

The cost of buying the freehold depends on these factors plus any development potential.

You are likely to need two sorts of advice:  valuation and legal.

For the valuation advice which we provide, prices for the initial inspection and report start at £299 for a lease extension report and £499 for a freehold purchase report.

Subsequent negotiations are charged at a rate of £175 per hour.  For a lease extension, it usually takes 1-3 hours to negotiate a deal with your landlord or their surveyor, and 2-5 hours for a freehold purchase.  Complicating factors, or an unreasonable Landlord can add to this.  We have an excellent track record of negotiating down premiums proposed by landlords by more than the cost of our services.  

In the case of the matter being referred to a tribunal (because the freeholder and leaseholder cannot reach agreement), these costs are also based on an hourly rate.  These costs are difficult to estimate because they will vary dependent on the extent of the differences e.g. if the difference between the freeholder and the leaseholder(s) just relates to relativity, the time involvement will be considerably less than if the differences involve, values, development value and appurtenant land.

Click here to get an immediate quote for an initial report for a lease extension.

You should contact a solicitor to find out how much they will charge to serve the notice and prepare the paperwork.

How long does it take?

To extend a lease, 2-3 months where the two parties have reasonable expectations, although it is possible to do it much more quickly when the freeholder and leaseholder are on good terms.  If the matter cannot be agreed by negotiation and is referred to the Leasehold Valuation Tribunal it could take around a year.

To buy the freehold, 4-8 months where the two parties have reasonable expectations.  If the matter cannot be agreed by negotiation and is referred to the Leasehold Valuation Tribunal it is likely to take more than a year.

What is the difference between extending a lease and buying the freehold?

The short answer is:  not a lot in value terms, unless there is some development potential.

Other not wholly financial considerations include being able to organise your own insurance and repairs (but if you own the freehold you will have to organise this!).

What is the difference between a 999 year lease and a 125 year lease?

There is negligible difference between the two in value terms, simply because £1 in 125 years time is worth very little.

Can a lease be extended just to 99 years?

The answer is yes, but it is not possible to force the freeholder to agree to this.  The only lease extension that you are able to force the freeholder to agree to is the one which extends your existing lease by 90 years.

How is the valuation report sent?

The report is sent electronically and by post.

What do I do if I want to buy a flat with a short lease?

You have three options:

Get the current owner to extend the lease prior to buying the flat - this may take some time, but it is the 'safest' route.

Get the current owner to serve a statutory notice to extend the lease and assign the benefit of this to you at the same time as the purchase of the flat completes - this means that you can 'take over' the position of the existing leaseholder so you don't have to wait two years before being able to extend the lease.  This route is less common because of the uncertainty about how much it will cost.  This uncertainty can be greatly reduced by getting professional advice on what the correct premium to pay for extending the lease is.

Buy the existing leasehold interest and wait two years before serving a notice to extend the lease - this is the period of time you have to have owned a flat before being able to serve a statutory notice.  A lease extension can be agree before this time period elapses but there is no obligation on the freeholder to grant one unless a statutory notice has been served.

If you have any other questions please ask us!