Ground Valuation For Leases Under 80 Years

If you have a lease that has dipped under 80 years you will need to start thinking about getting the lease extended or at the very least contact the freeholder to find out what a lease extension is going to cost. You may be lucky and have a very reasonable landlord who will do the extension for you at a very reasonable rate. On the other hand yu may have a freeholder that wants considerably more than it should cost.

The price of a lease extension can vary considerably across London as it is pegged to the value of your flat and the current length of your lease. In order to get a precise figure that you can use in a tribunal you will need to get a valuation carried out by a chartered surveyor. He will need to access the property and cary out a valuation.



Ground Rent Valuations Landlords Compensation - Share Of Marriage Value

Assuming you are asking for an extension of 90 years the following will be taken into consideration.

  • The diminution in the value of the landlord’s interest in the flat; that is, the difference between the value of his interest now with the present lease and the value of
  • *his interest after the grant of the new lease with the extra 90 years.
  • *Price of the flat with the current lease
  • *Price of the flat with a new lease ( 90 years extension )
  • *Compensation to landlord for loss of ground rent income.
  1. For a more detailed breakdown of what a lease extension will cost you can go the the leasehold Advisory Service which is an independent body set up by the government.

Ground Rent Valuations With Leases Under 80 Years

files/valuation-for-leases-under-80-years If you fall into the bracket of having an unreasonable landlord that will not accept your valuation you may have to go down the route of the Leasehold Valuation Tribunal (LVT). This an independent body that will decide what the cost of a lease extension should cost. They will carry out their own valuations and use the prescribed formula to arrive at premium for the lease extension.

Obviously it is best to try and avoid going down this route as you will be liable for all of the costs involved which can be considerable.

More Information

To find out what we would be prepared to offer you for a short lease flat please give us a call. We will be happy to provide you with as much information as possible.