A Lease Extension: How Much Does It Cost?
Numerous websites online offer simple calculator tools to help work out how much your lease extension is going to cost you. It is highly unlikely however that these are going to be 100% accurate. The cost of a lease extension is dependent on many different factors and these are things that an online tool cannot take into consideration. They are nevertheless a good starting point.
The cost of a leasehold extension is composed of 3 separate parts. The first and second aspects rely on exactly what the landlord demands as they are dependent on the compensation you will have to pay. The compensation is made from two different amounts, firstly the amount of money the landlord will lose by not having access to his freehold interest and secondly the loss of ground rent he will also suffer.
You must also be aware that any lease which has less than 80 years left to run will incur the additional charge of 'marriage value'. This will make your lease extension a lot more expensive, the amount is worked out using the value of your property pre-extension and how much it is worth afterwards, it works out the loss the landlord is suffering due to losing his freehold interest. Costs can hike up if they are to include a marriage value. This extra charge often deters many leaseholders from getting an extension.
Therefore in knowing this information you can see that if your lease has 30 or 40 years left to run it is going to cost this additional marriage value and therefore be quite costly. However around 60 years plus the cost will be more reasonable and 80 years plus quite low. The longer you have to run on your lease, the less costly your extension will be.
As well as these costs, you will need to use an expert surveyor in order to get a valuation on your lease. On top of this you will need to seek advice from a specialist lawyer, which will cost you legal fees. You must however make sure that you are appointing a lease extension specialist as most everyday solicitors will not have the right sort of experience. You must also pay out for the landlord's legal fees. So even though the compensation is the greatest cost, you will have to be aware of all the other fees so that you can estimate the real cost of the extension.
About the Author
If you are thinking of Lease Extension then contact Bonallack & Bishop (http://www.enfranchisementsolicitors.co.uk ), a firm experienced in Leasehold Extension. Senior Partner Tim Bishop is responsible for all major decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 12 years and has plans for its continued development.
Tell others about
this page:
Comments? Questions? Email Here