If you’ve owned a flat or duplex with a lease for less than 85 years, you may be familiar with the problems with a lease of this length and the costs of extending it. Now you probably think that an 85-year lease is enough and you don’t need to bother extending it. Well, this is fine as long as you are not selling the flat and intend to stay there until you die. Most people don’t live in flats forever and tend to live in them for a couple of years before moving into a single family home. If your flat has a lease of 85 years or less, you should consider getting a freehold owner’s quote for a lease extension.
If you are lucky enough to find a buyer for your apartment, the least they will ask you for is the cost of a lease extension. Most building societies will not lend on a flat with a lease of 80 years or less, so you may as well be armed with the information before you start marketing your property. Once you have your owner’s figure, you can at least pass it on to your buyer if requested. You may also decide to extend the lease yourself before selling your apartment, as this will certainly increase its value perhaps more than the cost of the extension.
When you contact your landlord It shouldn’t be difficult to get a price for your lease extension. Some homeowners will need payment up front and may want to ask a surveyor to conduct a survey of their flat before giving you a figure. Other freeholders will do a desk valuation and give you a figure based on that. The value of the lease extension will depend on two main factors: the remaining term of your lease and the open market value of your apartment. Obviously, the shorter your lease, the more expensive the lease extension will be. The figure will also rise dramatically if your flat is in central London, where prices are very high. If you want to find out approximately how much a lease extension will cost, look online for a lease extension calculator. Simply enter the length of your lease along with the amount of ground rent you pay and it should give you a figure.