Leasehold extension is a bit of a lengthy and complicated process that includes cost estimation and getting the right expert to take care of every single step engaged in the lease extension process, while avoiding every possible pitfall. Therefore, if you’re also considering extending the lease, then probably the first question that comes in your mind is ‘How much it will cost?’Unfortunately, it is not at all possible to estimate the exact cost to be incurred in extending the lease at the beginning of the process. Hence, let’s discuss this in brief:
Who can apply for a lease extension?
To apply for lease extensions, homeowners must:
- Own a lease, which was originally granted for at least of 21 years in length ; and
- Have owned the property for a minimum of 2 years;
There are a few exceptions such as commercial or business leases as well as the properties which are a part of a charitable housing trust.
How to calculate the value of leasehold extension?
The cost of a leasehold extension depends on multiple factors such as the value of the property, the annual ground rent, the number of years left on the lease and the ground rents payable during the term of the lease Therefore, it is necessary for you to contact an expert to calculate the value of the residential lease extension.
How to choose an expert and why you should consult one for leasehold extension?
The legal procedure around the leasehold extension is complicated and thus, requires an adequate understanding of the laws and regulations surrounding leasehold enfranchisement to manage the process successfully. As this area of law is a minefield, you will require an expert who can assist you at every single step along the way
The residential leasehold extension surveyor will help you produce a valuation report, which will calculate the premium payable for a lease extension. Every leasehold extension has numerous debatable variables and only an expert with the experience in leasehold law can be able to handle such debates and negotiate on your behalf. Now the question arises, how to choose an expert who could help you calculate the value of the leasehold extension? The answer to this question is:
- You should choose an expert who has sufficient knowledge of leasehold law and other related rules and regulations
- Check whether the specialist you are going to hire is competent to estimate the local property values or not
- Check the expert’s previous experience including the following:
- Is the expert a member of the Royal Institution of Chartered Surveyors (RICS)?
- Does the expert have a clear fee structure or not? (does he charge on hourly basis or project basis)
- Does the expert have enough knowledge about the geographical location of the property?
- Does the expert have an online presence and has an active website?
- Does the expert clearly and effectively communicate with you?
- Is the expert ready to provide evidence before a Tribunal?
- How many times the expert has appeared at a Tribunal?
- Does the expert mainly act for freeholders or leaseholders?
The role of chartered surveyor for the lease extension
The above mentioned points already describe the significance of professional advice and consultation in the lease extension process. Let’s throw light on the role of chartered surveyor for lease extension:
An expert should be able to:
- Evaluate the value of the leasehold extension in line with schedule 13
- Help you know how much to offer landlord in the tenant’s notice
- Help you know how to respond to the landlord’s counter notice
- Negotiate on your behalf with the landlord
Therefore, it would be strongly advisable for you to appoint an expert to extend your lease because a valuation surveyor should have good knowledge of the leasehold law and local property market. Moreover, we have come up with a chronology of steps to execute to make the leasehold extension process easy and effective:
Step 1: Appoint a chartered surveyor for lease extension who is a member of the RICS
Step 2: Ask your solicitor to serve a formal notice on your landlord based upon the valuation received by your surveyor
Step 3: Once the counter notice is received from your landlord ask your surveyor to negotiate the premium payable.
Step 4: Once the premium has been agreed, ask your solicitor to complete the new lease.
At Leasehold valuations, our specialists handle a large number of lease extension cases in the UK every year. Hence, we are familiar with such cases and can help you make the most of your hard-earned money while making the lease extension process transparent and hassle-free.