Lease Extension Calculator Information
The above three figures should give you a reasonably accurate guideline to the likely premium that a Leasehold Valuation Tribunal would calculate using statutory methods.
How is your lease extension cost calculated?
A complex algorithm is used to derive the estimated premium in line with the rules set out by statute, in particular Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993. Modern case law decisions influence this algorithm, and we constantly monitor these decisions and tweak our calculator accordingly. You may be interested to know that we are currently using the following variables:
To receive a comprehensive breakdown and professional report detailing how the lease extension premium is calculated for your property, we offer quick same day turn around service at a cost £45. This report is critical for any person wanting to negotiate the premium.
How to agree on a premium
Freeholders and leaseholders negotiate a premium based on their own valuations. Leaseholders should present their own calculations to the freeholder in a professional report with the aim of negotiating a lower premium. In fact freeholders expect leaseholders to negotiate. We strongly recommend that you appoint a professional to deal with this aspect. Appoint a solicitor specialising in lease extensions at the very outset; a good solicitor should be able to analyse your valuation report and negotiate on your behalf to achieve the lowest possible premium. See our section on choosing a solicitor
About our lease extension calculator
Our lease extension calculator results reflect an extremely close approximation of the true cost of extending your lease in accordance with the rules, common law cases and statutory requirements of a valuation. Our calculator adheres to these rules entirely providing extremely accurate results, however it does not substitute the need for a professional valuation report. Online estimates do not take into account rising ground rents, which can have a substantial impact on the valuation. It is common for residential leases to have ground rent review every 25 or 33 years (either be a fixed stepped amount, doubling or even in line with RPI). We highly recommend that you instruct a solicitor who fully understands the valuation process and is able to negotiate on your behalf.
Disclaimer: Our lease extension calculator tool may be the most accurate freely available (without cost), but we ask our users to not rely on our results, they are provided for guidance only.