What is a leasehold extension?

A leasehold extension is the process of extending the lease term of a property held on a leasehold basis. It helps maintain the property's value and desirability. Leasehold extension legislation allows leaseholders to extend their lease, ensuring the property remains attractive for sale or mortgage purposes.

How long is a leasehold extension ?

The length of a leasehold extension can vary depending on the jurisdiction and specific circumstances. In some countries, such as the United Kingdom, leasehold extensions are typically granted for an additional 90 years beyond the remaining term of the existing lease. However, it's important to note that leasehold extension regulations can differ, and it's advisable to consult local laws or seek professional advice like leasehold valuations for accurate information regarding leasehold extensions in a specific jurisdiction.

What are the benefits of lease extension ?

Extending the leasehold of a property offers benefits such as increased property value, improved marketability, easier access to mortgage financing, peace of mind and security, the avoidance of escalating costs, and more control over property management.

What happens to leasehold property after 99 years ?

After 99 years, the leasehold property typically reverts back to the freeholder, unless the lease is extended by the leaseholder. The ownership of the property, along with the land it is built on, returns to the freeholder once the lease expires. As a lease approaches its expiration, the property’s value may decrease, making it more challenging to sell or mortgage. It is advisable for leaseholders to consider extending their lease well before it reaches the 99-year mark to maintain the property’s value and their ownership rights.

Why choose leasehold Valuations for Lease extension or Buying Freehold ?

1. Fair Price: A leasehold valuation ensures you pay a fair price for a lease extension or freehold purchase.2. Increased Property Value: Extending the lease or buying the freehold can potentially increase your property’s value.3. Cost Savings: Accurate valuation helps minimise future costs like ground rent.4. Stronger Negotiation: A valuation report strengthens your position during negotiations with landlords.5. Legal Compliance: Valuations ensure you meet legal requirements for lease extensions or freehold purchases.6. Future Planning: Valuations help you plan for selling or passing on the property to future generations.7. Expert Advice: Engaging a valuer provides access to their expertise and guidance.8. Mortgage Support: Valuation reports improve your mortgage opportunities for lease extensions or freehold purchases.

How much does it cost to renew a leasehold ?

The cost of renewing a leasehold in the UK can vary depending on various factors, such as the property value, the length of the renewal term, and any negotiations between the leaseholder and the freeholder. Unlike extending a lease, which typically involves paying a premium to the freeholder, renewing a lease generally involves paying a nominal fee known as a “peppercorn rent” or a small percentage of the property value.The exact cost of renewing a leasehold will depend on the specific terms agreed upon between the parties involved. It is advisable to consult with a solicitor or a licenced conveyancer who specialises in leasehold matters to get an accurate estimate of the costs involved based on your particular situation.

Q. How much does it cost to extend a leasehold in uk ?

The cost of extending a leasehold in the UK can range from a few thousand pounds to tens of thousands of pounds, depending on factors such as the remaining lease length, property value, and negotiated terms with the freeholder. Additional costs include legal fees, valuation fees, and disbursements such as Land Registry fees. It’s recommended to seek professional advice for an accurate estimate based on your specific situation.

Buy Your Freehold Property in Uk with leasehold Valuations

Purchase Freehold Property in the Southeast of United Kingdom

In the Commonhold and Leasehold Reform Act 2002 and the Leasehold Reform Act (as amended) 1993, the residency test has been abolished, which means that a leaseholder now only needs to have owned the flat for 2 years before he or she can apply for a lease extension or buy a freehold.

A leaseholder has the right to buy the freehold of a house if the house is owned on a lease.
They do not need to live there to qualify. In addition, if they wish to sell their flat, they can also sell on their rights under Section 42 of the 1993 Act, so the new purchaser does not have to wait 2 years to qualify.

In order to exercise either right, a prescribed formal notice must be served on the freeholder and any intermediate landlords. The freeholder then needs to serve a counter notice within strict time scales or must either extend the lease or sell the freehold at the premium stated in the leaseholder’s notice.

However, before the notice is served, a valuation must be completed so that a premium can be entered in the notice. This valuation is known as the leasehold valuation.

Leasehold Valuations help numerous groups of leaseholders buy their freeholds.

Leaseholders generally decide to purchase their freehold for two reasons:

If they are unhappy with the way the freeholder has been managing the property.
If they wish to add value to their property.

What are freehold properties?

Any estate that is “free from hold” of any person or organisation besides the owner is said to be freehold property. As a result, the owner of such an estate has free ownership in eternity and is capable of accessing the land in any way they want as long as they do it in line with local norms.

Is it worth to buy freehold Property ?

Yes, buying a freehold property can be worth it because it offers ownership and control over both the building and the land, potential long-term appreciation, flexibility in usage, and the ability to make changes without permission. However, it also comes with added responsibilities and costs for maintenance and repairs. Consider your financial situation and long-term goals before making a decision.

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How will Leasehold Valuations assist you in purchasing your freehold?

Leasehold Valuations is a reputable company. We offer insightful advice when appraising freehold and leasehold properties in the UK. Our major goal is to support you in acquiring your ideal residence in the UK. We have chartered specialists who can assist you in every manner in order to purchase your freehold house.

Leasehold Valuations help you, check and report on the legal title.
In the collective enfranchisement application process, we can assist you with value guidance.
First-hand information on whether your building is eligible for collective enfranchisement
Sending any value-related issue to the First Tier Tribunal when necessary (Property Chamber)

Before this can be achieved, you will need to have a professional valuation done and get some legal advice. Most freeholders are unwilling to relinquish their freeholds, and so the process becomes protracted. There are a number of qualifying criteria that you will need to meet before you can enfranchise, which the correct professionals can assist you with.

Our valuation team will make sure you receive the correct advice, avoid unnecessary delays and costs, and manage the entire valuation process for you from start to finish so that you are able to buy the freehold for as little as possible.

Client’s Case Studies

£1.3 Million

Total amount of save

This block contained 6 flats. The leaseholders wanted to purchase the freehold. The landlord originally wanted £83,000, but we managed to get it for £40,000, thereby saving the leaseholders over £40,000.

Hazeldene Court, Woking GU21 4JX

£19,000

Total amount of save

4 leaseholders wanted to purchase their freehold. Landlord wanted £113,000. We managed to reduce this to £70,000, thereby saving the leaseholders £43,000.

16-22 Cavell Rd, Oxford

Client’s Testimonial

Kingsley Okoli

13 hours ago

I had the pleasure of using Jatinder’s services to carry out a lease extension valuation on a recent purchase of a leasehold flat with 52 years unexpired. Jatinder was prompt with his communication and produced a thorough report laying out the details of expected premium to pay. I found using him an enjoyable experience and would recommend to others.

Venkata Sudeep Pounzula

10 days ago

Jatinder has been very efficient,meticulous and professional at all stages of the process.He was comprehensive and explained to me the Pros and Cons of the options available very clearly.This helped me make my decisions in an area where I had zero knowledge. His advice was with my interest at heart. I would highly recommend him for his negotition skills, knowledge of the lease extensions process and commitment to the customer

Fiona Rogers-Coltman

8 months ago

I was Recommended to Jatinder at Leaseholders Valuations and have found them to be efficient, prompt and helpful - would definitely recommend.

Shaikh Mubassira

9 months ago

Jatinder helped us immensely throughout the whole process and answered all the questions we had in a lot of detail. He is very knowledgeable, and I couldn’t recommend the service enough.

Kiranee dhanoa

5 months ago

Jatinder at Leasehold Valuations, was extremely helpful when I spoke to him regarding my freehold purchase. I will definitely be using his services again in the future.

Break The Noise Records

10 months ago

Thank you Leasehold Valuations for the your great help and understanding my freehold purchase queries.

rajan bains

a year ago

Fantastic service from Jatinder, leases can be difficult and Leasehold valuations helped us through and gave us guidance to make sure we reached the best deal for the extension.

Chen Jack

a year ago

Delightful experience working with Jatinder. He made the whole procedure uncomplicated. He communicated everything back to us quickly and was helpful with any questions we had. Thank you for your help with our lease extension you helped the process go smoothly.

Dawn Edwards

2 years ago

I used Jatinder for an EPC survey and was very impressed with the speed and efficiency of getting the appointment booked and then receiving the report. I wouldn't hesitate to use him again or to recommend him.

Andrew Asker

2 years ago

I have used Jatinder of Leasehold Valuations for 2 lease extensions and a communal enfranchisement claim. His prices were reasonable, he responded quickly and efficiently and he always explains things clearly. His terms are clearly laid out and he is very knowledgeable indeed. My only regret is that I had not found him earlier!

fida hussain

2 years ago

As a leaseholder of several buy-to-let flats, I've now used Jatinder for several lease extensions and have found him to be excellent value - both in successfully negotiating a reduced Premium and his attention to detail. I would use again.

eCare Infoway LLP

2 years ago

I used LeaseholdValuations.com to extend the lease on my flat which only had 59 years remaining. I had spoken to some other lease extension specialists previously but found LeaseholdValuations.com more friendly and much more helpful. They were very patient and helped me throughout each stage of the process. On top of this they saved me over £15,000 from what the freeholder was asking. I would certainly use them again and will be recommending them to my friends and family. Well done

5.0

11 reviews

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FAQs

Q. Is it safe to buy freehold property?

Purchasing freehold property is safe enough as long as you work with competent solicitors and surveyors who are acquainted with the local legal system. When it comes to honesty, ethics, and providing homes for UK citizens, Leasehold
Valuations come first.

Q. Which is better, freehold or leasehold?

Both leasehold and freehold offer advantages and disadvantages, but which is better for you will depend on your needs, resources, and long-term objectives.

Compared to leasehold ownership, freehold ownership offers more certainty regarding ownership, more flexibility when selling the property, and easier access to mortgage loans. If finances are limited, leasehold ownership makes sense; otherwise, freehold ownership is always preferable.

Q. Are freehold properties worth more?

Leasehold land is less expensive than freehold land. With freehold land, bank loans and repayments are simpler. You might have to put down a larger down payment for land if the land is freehold. Compared to leasehold property, freehold land has greater capital growth.

Q. To what extent does freehold ownership increase the cost of purchasing a house?

Valuation surveyors estimate that having a freehold increases a flat’s worth by 1 percent of its overall value when compared to a comparable asset. The rise in value of the property, however, isn’t always a compelling argument.