Cost to extend lease

How is your lease extension cost calculated?

Ground Rent Loss
Freeholder's lost ground rent - £1,220.32

Ground Rent: £75 per annum

Years Purchase factor for 64.19 years @6%: 16.271

Freeholder's Ground Rent entitlement: £1,220.32

Reversionary Interest
Reversionary Interest - £1,220.32

Value of the leasehold property if it was extended by 90 years: £27,184.57

Deferred for years at a rate of 5%: £27,462.91

Deferred for years at a rate of 5%: £26,867.74

Diminution in landlord's value: £26,862.95

Marriage Value
Marriage Value - £37,048

This only applies if the existing lease term has less than 80 years remaining.

Tenant's future interest: £595,000

Landlord's future interest: £322

Landlord's and Tenant's future interest: £595,322

Tenant's current interest: £492,822 using relativity of

Landlord's current interest: £28,405

Landlord's current interest: £28,962

Landlord's and Tenant's current interest: £521,227

Difference between future and current interests: £74,095

Marriage value is half of the above: £37,048

Adding the 3 factors together:

Total Lease Extension Cost - £65,612

About our lease extension calculator

We believe that our lease extension calculator results reflect an extremely close approximation (within +/- 3%) of the true cost of extending your lease in accordance with the rules, common law cases and statutory requirements of a valuation. It must be noted that various surveyors have slightly different methods of calculating the likely premium. Our experience tells us that a substantial percentage of these surveyors are not calculating in accordance with the strict rules that the Leasehold Valuation Tribunal (LVT) set out. Our calculator adheres to these rules entirely providing extremely accurante results./p>

Disclaimer: Our lease extension calculator tool may be the most accurate freely available (without cost), but we ask our users to kindly not rely on our results, they are provided for guidance only.