Instructions on how to use the Lease Extension Calculator
To use the lease extension calculator, you will need to provide 3 important pieces of information. If you are not sure about any of this, please contact us for assistance:
"Years left on the lease:" (Unexpired Term).This is calculated by finding the "lease commencement date" (this is rarely the same date as the lease was created or signed. It is usually before this date). The number of years granted, "the term" is then added to this period. The calculation year is then deducted e.g. Lease commenced 2000; Term of years 99; Calculation Year 2019 ; then "Years left on the Lease" = 80.
"Long Lease Value (£):" This is the price it is estimated that the flat would sell for on the assumption the flat had a long lease (more than 100 years unexpired). A local estate agent should be able to help you establish this figure if you are not sure.
"Is it in Prime Central London?" It is necessary to determine whether your property is inside or outside Prime Central London. This factor has a major impact on the cost of the lease extension. Prime Central London is generally defined as Notting Hill, Bayswater, Marylebone, Holland Park, Mayfair, Kensington, Knightsbridge, Westminster, Earls Court, South Kensington, Belgravia, Chelsea and Pimlico.
The above figures, in the lease extension calculator, should only be used to arrive at a 'Ballpark' figure. They should not be used in a Notice of Claim or as an informal offer. We recommend a fully inspected valuation should be carried out prior to purchase or serving any Notice on the Freeholder/Head Lessee or any informal offer.
The above figures, in the lease extension calculator, assumes there is no short lease evidence available. However, you should note that the purchase price of short lease property particularly this property may increase the premium significantly.
The above figures in the lease extension calculator, assumed a nominal ground rent of £50 doubling every 33 years. A higher ground rent and more frequent reviews will increase premiums. It does not take into account all of the variables or allow for changes in ground rent or lease irregularities.
The above figures in the lease extension calculator, do NOT include professional fees. Leaseholders are obliged under the legislation to pay their own professional fees and those of their Landlord/Freeholder.
The above figures, in the lease extension calculator, are not the considered opinion of a Chartered Surveyor. Specific statutory assumptions apply when determining the ‘short lease’ value and inaccuracy here can significantly affect the end premium that is produced.
The above figures, in the lease extension calculator, at unexpired terms of 80 years and below uses the parameters of relativity contained within the guidance given in Case Law. This inevitably changes over time as new cases are heard and the interpretation of the law varies. Therefore, it is advisable to contact us, to arrange an inspected valuation, for an accurate up to date assessment of the premium payable for a lease extension.