Lease Extension and Enfranchisement Specialists

Introduction to Lease Extension

Richard John Clarke Chartered Surveyors: Lease Extension Valuers

  • Richard John Clarke’s primary aim is to achieve lease extensions at the lowest cost to our clients
  • We are celebrating our 20th Anniversary Year
  • Members of the Association of Leasehold Enfranchisement Practitioners (ALEP) for 10 Years
  • Members of the Royal Institution of Chartered Surveyors (RICS) for 25 Years
  • RICS Registered Valuers (RRV)
  • We often appear at the First-tier Tribunal on behalf of our clients to ensure our clients get a fair deal (click above to look at the most recent tribunals we have dealt with). We currently deal with approximately 300 lease extensions and collective enfranchisements per year.
  • We have been practising carrying-out lease extensions and collective enfranchisements since 2007.
  • Whilst it’s still rare, we often appear at the First-tier Tribunal on behalf of our clients to ensure they get a fair deal (click above to look at our most recent tribunal decisions)

If you would like a Lease Extension at the lowest cost to yourselves, instruct Richard John Clarke Chartered Surveyors to carry out the valuation and negotiations on your behalf.

For a Free No obligation quotation please call our Freephone number on 0800 470 1117, email us or complete the form below.

 

  • We are happy to provide free no-obligation quotations of our valuation costs for our potential clients.
  • In order to set a budget, Richard John Clarke’s fees are set on a fixed price basis, so our clients know from the out-set what our charges are going to be to complete the Lease Extension.
  • We can seek quotes from one of our recommended Lease Extension Solicitors to deal with the legal aspects of the claim.
  • Where it is possible, we will also provide a “estimated ballpark” figure for the Lease Extension Costs payable to the freeholder

How much will a Lease Extension cost?

In addition to your own legal and valuation costs, the Freeholder is allowed to and generally will charge for being compelled to grant a Lease Extension. This includes 4 distinct costs which are described below:

  1. Capitalised Ground Rent, of each flat, is found by applying the Ground Rent Multiplier to the ground rent, which can vary from 14 to 30 times the ground rent depending on the amount of ground rent, the frequencies of reviews and the amount of increase at review. Onerous ground rents (eg ground rents that double every 10 years) will cost many more times this. Richard John Clarke argue for a lower multiplier on behalf of our leaseholder clients.
  2. Reversionary Value is the “share of freehold” value of each flat, discounted at an interest rate of 5% for each of the years that remain on the lease. This figure varies from approximately 1% of the “share of freehold” value at 95 years unexpired but increases to 95% at 1 years unexpired! Freeholders’ initially tend to inflate the value of each flat rather than adopt a fair valuation. Richard John Clarke argue for lower reversionary value on behalf of our clients.
  1. Marriage Value, only payable for flats with 80 years or less unexpired, this is an extra payment calculated at 50% of the additional value created by enfranchising the building and giving each flat a “share of freehold”. This payment is between 1% and 11% of the “share of freehold” value of each flat. Richard John Clarke argue for a low marriage values on behalf of our leaseholder clients.
  2. Professional Fees, known as Section 60 costs, represent the freeholders’ legal and valuation costs. The guiding principle is that these are limited to “reasonable costs” but very often amount to several thousand pounds. However, the freeholders are not entitled to claim for the costs of negotiations or preparing/attending the First-tier Tribunal. These fees need to be checked and if necessary, challenged to ensure they are fair. Richard John Clarke and our Solicitor colleagues always check these costs are reasonable for our leaseholder clients.

 

For a Free No obligation quotation please call our Freephone number on 0800 470 1117, email us or complete the form below.

Do you qualify to for a Lease Extension?

The Leasehold Reform, Housing and Urban Development Act 1993 gives most flat owners the right to a Lease Extension providing the following conditions apply:

  • The original lease needs to have been granted for 21 years or more
  • Flat owners need to have owned the flat for 2 years

Lease Extension Solicitors

The Lease Extension process can be quite complex, including both legal and valuation specialisms.  In order to deal with the legal aspects of the process, we work with specialist Lease Extension solicitors, who have experience in this area of the law:

Our recommended Specialist Lease Extension Solicitors are as follows:

 

  1. Toni Tripp, PA to Jason Winton of Thirsk Winton Solicitors  Swan House 9-12 Johnston Road Woodford Green Essex IG8 0XA Tel: 020 8505 4777
  2. Angela Alexiou of YVA Solicitors  YVA House 811 High Road North Finchley London N12 8JT t:  020 8445 9898
  3. Mark Chick or Chris Macartney of Bishop & Sewell Solicitors  59-60 Russell Square London WC1B 4HP Tel 020 7631 4141

To help calculate the cost of your lease extension we have prepared two tables, shown below, which provide a range that a typical lease extension is likely to cost. However, this is subject, but not limited to, the following:

  1. Assumed Nominal Ground Rent of £50 doubling every 33 years. A higher ground rent and more frequent reviews will increase premiums
  2. This guide should only be used to arrive at a 'Ballpark' figure, we recommend a full inspected valuation should be carried out prior to purchase or serving Notice on the Freeholder/Head Lessee
  3. This guide assumes there is no short lease evidence available. However, you should note that the purchase price of this short lease property and others may increase the premium significantly

For properties within Prime Central London (this is generally defined as Notting Hill, Bayswater, Marylebone, Holland Park, Mayfair, Kensington, Knightsbridge, Westminster, Earls Court, South Kensington, Belgravia, Chelsea and Pimlico) please see the table below.

For all other properties outside Prime Central London, please see the table below:

Lease Extension Calculator

Years left on lease:

 

Long lease value (£):

 

Is it in Prime Central London?:

 

Cost of Extension (low):

 

Cost of Extension (high):





DISCLAIMER: A lease extension calculator is not the considered opinion of a Chartered Surveyor. It does not take into account all of the variables, or allow for changes in ground rent or lease irregularities. Specific statutory assumptions apply when determining the ‘short lease’ value and inaccuracy here can significantly affect the end premium that is produced.

 

We are using the parameters of relativity following the general guidance of the RICS Research Document 2009 on graphs of relativity.

 

The figures above should not be used in a Notice of Claim or as an informal offer. There may be other issues that need to be taken into account and you obviously want to be as accurate as possible in your negotiations.

Contact Us

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020 7499 8043

info@richardjohnclarke.com

11 Masons Arms Mews

Mayfair

London

W1S 1NX

2018 © Richard John Clarke Chartered Surveyors

020 8505 2065

info@richardjohnclarke.com

Swan House

9-12 Johnston Road

Woodford Green

Essex IG8 0XA

Years left on lease:

 

 

Long lease value (£):

 

 

Is it in Prime Central London?:

 

 

Cost of Extension (high):

 

 

Cost of Extension (low):