The premium is based on the market value of the flat, the current and future ground rents payable and the number of years left on the lease. The shorter the lease, the more expensive it becomes and if its under 80 years, “marriage value” applies which substantially increases the cost.

Marriage value: The increase in property value created by the lease extension, which is split 50/50 with the freeholder once the lease drops below 80 years.
Relativity: The value of your flat with its current lease length compared to a long lease.

Your own professional fees and the freeholder’s reasonable surveyor and solicitor costs.

You will normally be expected to cover around 20% of the overall lease extension cost within the first month of the process with the remaining 80% at the end of the process on completion. Given the process typically takes around 6-12 months to complete, this allows considerable time in which to arrange the necessary funds. Our lease extension consultants can prepare an estimated total cost of the process for you so you can plan and budget accordingly.