FAQs
Get the answer you want to know.
The premium is the single biggest question most leaseholders have, and the hardest to answer without looking at the lease. It is driven by the unexpired term, the value of the flat, the ground rent provisions and, below 80 years, marriage value.
These articles explain how the premium is calculated, what else you will pay beyond it, and where value is most often gained or lost. If you want an indicative figure now, our lease extension calculator gives an estimate in a couple of minutes.
Articles in this section
- How much does it cost to extend my lease?
- How is the lease extension premium calculated?
- What is marriage value?
- What is market value?
- How much value will extending my lease add?
- What are the freeholder’s recoverable costs?
- How can I fund the cost of a lease extension?
- Lease Extension Valuation Cost ‘ Section 42 Notice Fees: A London Leaseholder’s Guide
- Ex-Local Authority Flats: Why Specialist Valuation Matters
- What if I have improved or extended my property?
Costs & Valuation
The total cost includes the premium paid to the freeholder, your surveyor’s and solicitor’s fees, and the freeholder’s reasonable professional fees. Our lease extension consultants can guide you on these costs and provide a realistic total estimated cost before you start the process.
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.
