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.

How We Saved Our Clients Thousands in Leasehold and Freehold Transactions Part – 2

October 30, 2023

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At Leasehold Valuations, our commitment to our clients is unwavering. We are dedicated to securing the best possible outcomes for leaseholders and freeholders in their property transactions. Below are some real success stories that exemplify our ability to negotiate effectively, reduce costs, and achieve substantial savings for our valued clients.

Case 1: Lease Extension Savings

Situation: A 2-bedroom flat within a block needed a lease extension. The landlord initially proposed a significant premium of £36,000.

Our Solution: With our expertise in lease extensions, we entered negotiations on behalf of our client. Through strategic negotiation and a deep understanding of leasehold valuations, we successfully reduced the premium to a far more reasonable £26,500. This substantial reduction not only extended the lease but also saved our client a significant sum.

Case 2: A Remarkable Reduction in Freehold Purchase Premium

Situation: Our client sought to purchase the freehold of their house. The landlord originally demanded a premium of £2,000.

Our Solution: Advocating for our client’s interests, we embarked on negotiations. Leveraging our proficiency in freehold purchases, we secured an extraordinary outcome—a premium reduction from £2,000 down to a mere £50. This remarkable reduction showcased our ability to maximise savings for our clients.

Case 3: Collective Freehold Purchase Savings

Situation: Four leaseholders were determined to purchase the freehold of their property. The landlord initially insisted on a premium of £113,000.

Our Solution: Serving as the leaseholders’ advocate, we skillfully negotiated with the landlord. Our in-depth knowledge of freehold enfranchisement and our commitment to achieving the best outcome led to a significant victory. The final agreement saw the premium reduced to £70,000, resulting in collective savings of £43,000 for the leaseholders.

Case 4: A Cost-Effective Freehold Purchase

Situation: Two leaseholders aimed to purchase the freehold of their property. The landlord initially requested a premium of £15,250.

Our Solution: Stepping in to represent our clients, we harnessed our expertise in freehold purchases. Through effective negotiation, we successfully reduced the premium to £12,300, providing our clients with a cost-effective solution while retaining their property rights.

Also Read: Case Studies Part-1 Lease Extensions and Freehold Purchases

Conclusion

These success stories underscore Leasehold Valuations’ unwavering dedication to our clients’ best interests. Our commitment to strategic negotiation, in-depth knowledge, and a deep understanding of property transactions consistently lead to remarkable outcomes. Whether you’re seeking a lease extension, freehold purchase, or collective enfranchisement, you can trust Leasehold Valuations to be your partner in achieving substantial savings and securing the best possible results for your property transaction needs.