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.

Case Studies Part-1 Lease Extensions and Freehold Purchases

October 27, 2023

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At Leasehold Valuations, we take immense pride in our mission to empower leaseholders and freeholders alike in navigating the intricate world of leasehold and freehold enfranchisement. Our team of dedicated experts has a proven track record of achieving remarkable results for our clients. Let’s explore some real success stories that showcase the difference our expertise can make in property transactions.

Case 1: Negotiating a Lease Extension

Situation: A leaseholder approached us with a 2-bedroom ground-floor maisonette boasting only 62 years left on the lease. The landlord originally demanded an imposing £45,000 for the lease extension.

Our Solution: Leveraging our extensive knowledge of lease extensions, we embarked on negotiations on behalf of the leaseholder. Our expertise in property valuations and negotiation tactics allowed us to secure a remarkable outcome—a substantial reduction in the price. The final agreement saw the cost reduced to a much more manageable £28,000, safeguarding the leaseholder’s property and saving them a significant sum.

Case 2: Maximising Returns for the Freeholder

Situation: Acting for the Freeholder of a highly sought-after 2-bedroom maisonette, a leaseholder served notice with a modest offer of £16,800 for the lease extension.

Our Solution: In this scenario, we were entrusted with representing the Freeholder’s interests. Drawing upon our in-depth expertise, we meticulously assessed the property’s value and skillfully negotiated. The result was a substantial increase in the offer, securing an impressive £32,000 for the lease extension on behalf of the Freeholder.

Case 3: Empowering Leaseholders to Purchase the Freehold

Situation: Six leaseholders within a block of flats were eager to purchase the freehold. The landlord initially demanded a significant sum of £83,000 for the transaction.

Our Solution: Advocating for the leaseholders, we took charge of negotiations with the landlord. Our expertise in freehold enfranchisement proved invaluable as we skillfully navigated the process. The outcome was a significant victory for the leaseholders, as the final agreement saw the cost of the freehold reduced to a mere £40,000. This not only empowered the leaseholders but also collectively saved them over £40,000.

Case 4: Reducing the Cost of Freehold Purchase

Situation: Two leaseholders of maisonettes were determined to purchase their freehold from the landlord, who initially sought £45,330 for the transaction.

Our Solution: Stepping in to represent the leaseholders, we harnessed our expertise to ensure a fair and favourable deal. Our negotiation skills and our deep understanding of freehold valuations played a pivotal role. As a result, we achieved a significant reduction in cost, with the final agreement setting the price at a much more reasonable £22,600, effectively halving the expense and delivering substantial savings to the Leaseholders.

Discover the key to seamless lease extensions with our user-friendly Free Online Lease Extension Cost Calculator. Take control of your property’s future and make informed decisions on lease extension costs today.

Conclusion

These success stories underscore the transformative impact of Leasehold Valuations’ expertise in property transactions. Our commitment to empowering our clients through comprehensive knowledge, skilful negotiation, and dedication to their interests consistently leads to remarkable outcomes. Whether you’re a leaseholder seeking a lease extension, a Freeholder maximising returns, or a group of leaseholders looking to purchase the freehold, our team is here to guide you through the process, ensuring the best possible results. Trust Leasehold Valuations to be your partner in achieving property transaction success.