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.

Demystifying the Lease Valuation Tribunal: What You Need to Know

July 31, 2023

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As a leaseholder, you may have heard about the Lease Valuation Tribunal (LVT), which plays a crucial role in resolving leasehold disputes and determining a fair lease valuation. However, understanding its workings and how it can impact your leasehold property might seem daunting. In this blog, we will demystify the Lease Valuation Tribunal and shed light on what you need to know.

What is the Lease Valuation Tribunal?

The Lease Valuation Tribunal, now known as the First-tier Tribunal (Property Chamber), is an independent judicial body in the UK. Its primary function is to adjudicate on various leasehold matters, including disputes between leaseholders and freeholders, service charge disputes, lease extensions, and determining fair lease valuations.

When do I Approach the Lease Valuation Tribunal?

If you find yourself embroiled in a dispute with your freeholder or face challenges related to your leasehold property, the Lease Valuation Tribunal can be a recourse for resolving the matter. Common scenarios where leaseholders seek the tribunal’s intervention include:

Lease Extensions:

When negotiating a lease extension with your freeholder, you cannot agree on the premium or terms.

Service Charge Disputes:

If you believe that the service charges demanded by the freeholder are unreasonable or not in accordance with the terms of the lease.

Leasehold Management Disputes:

In cases where there are disputes over the management of the leasehold property or the appointment of a managing agent

Right to Manage:

When leaseholders wish to take over the management of the property from the freeholder under the Right to Manage legislation.

The Lease Valuation Tribunal Process: What to Expect

Engaging with the Lease Valuation Tribunal follows a structured process, ensuring fairness and transparency for all parties involved. Here’s an overview of the typical steps:

Application:

The leaseholder initiates the process by filing an application with the tribunal, outlining the dispute and the desired outcome.

Response:

The freeholder or relevant parties named in the application submit their response, addressing the issues raised.

Evidence Gathering:

Both parties present evidence to support their case, which may include documents, expert reports, and witness testimonies.

Hearing:

In some cases, the tribunal will hold a formal hearing to listen to both parties’ arguments and review the evidence presented.

Decision:

The tribunal will then reach a decision that is legally binding on all parties involved.

Benefits of the Lease Valuation Tribunal

The Lease Valuation Tribunal offers several advantages for leaseholders, including:

Expert Resolution:

The tribunal consists of experienced professionals who understand leasehold matters, ensuring a fair and expert resolution.

Cost-Effective:

Engaging with the tribunal is often more cost-effective than pursuing legal action in court

Speedy Process:

The tribunal aims to resolve disputes efficiently, offering a quicker resolution compared to traditional court proceedings.

Impartiality:

The tribunal is impartial and provides an objective assessment of the dispute.

Final Thoughts
Demystifying the Lease Valuation Tribunal helps empower leaseholders with the knowledge they need to protect their rights and interests in leasehold matters. If you find yourself facing a leasehold dispute, seeking the guidance of the tribunal could be the key to finding a fair and equitable solution. Remember, it’s essential to seek professional advice and support to present your case effectively and maximize your chances of a favourable outcome.