Telephone: +44 (208) 368 6516 / +44 7379201700
Email: bookings@appraisalsurveyors.co.uk
LEASEHOLD EXTENSION VALUATION, NEGOTIATION AND TRIBUNAL REPRESENTATION
A formal RICS Red Book Valuation is often required in order to ascertain the premium that you should expect to pay or receive for a residential lease extension. In brief a leaseholder will qualify if:
Should you require a quotation for our Leasehold Extension Services, please contact us providing the address and if known the number of years that remain on the lease. We will either arrange to inspect the property but can also provide and estimate of the premium that you should expect to paywithout an inspection although accuracy can sometimes be affected. The valuation of lease extension, negotiation and settlement of the premium payable / receivable for a standard building is described below. Once you have accepted our quotation and we have received your payment, the report will be prepared and the property will normally be inspected, the surveyor will send you the report within 4 working days.
Valuation
The surveyor will need to inspect the property for the Valuation or take full details from you if access is not possible for any reason. In all cases, brief details are also required from your lease to determine how many years remain and we also need to know the level of ground rent payable. Ground rent sometimes rises during the term of the lease (eg £100per year for 33 years, then £200 per year for 33 years then £300 per year until the end of the lease) or may be subject to regular reviews using the Retail Price Index. If you do not have this information or a copy of the lease then we can obtain basic details from the land registry at no cost to you. If you have received or sent a notice or are considering an offer that has been made, you should provide this to us.
Once the inspection has been carried out, we will send you the valuation report to enable your decision on how much to offer within the relevant notice that is served. Many leaseholders and freeholders negotiate directly regarding the size of the premium payable however a negotiation service is offered if required. A report listing recent local sales for similar properties will be provided with your valuation together with detailed calculations of each element of the extension premium. This is to enable you to discuss property values and other factors directly with your freeholder with a view to reaching agreement directly regarding the premium payable, hopefully without further involvement of a surveyor.
Negotiation
Should the premium remain in dispute, negotiations with your freeholder’s or leaseholder’s surveyor can be undertaken on your behalf. This involves exchanging valuations and carrying out a detailed analysis of further comparable sales information to ascertain the elements of each valuation which can be agreed, those which remain in dispute (if any) and if the level of premium is capable of agreement without a hearing. The premium offered will need to match the valuation figure advised for such negotiations to be possible although every attempt is made to secure a lower premium.
Tribunal Representation
Whilst often successful, reaching an agreed settlement is not always possible and the matter may still need to be referred to a tribunal thereafter with each party submitting their evidence and attending the tribunal. It is advisable in terms of negotiation strategy to apply to the tribunal for a hearing as early as possible and cancel the application if agreement is reached.
We can offer Tribunal Representation service only in conjunction with the negotiations. This service includes preparation of paperwork and attendance at tribunal hearing/s. Whilst it is common for negotiation purposes to apply for a hearing date when parties are far apart on the premium amount but it is rare that a case would actually reach hearing stage, applications being cancelled when a premium amount is agreed.
POSSIBLE CHANGES TO LEASEHOLD REFORM - Leasehold & Freehold Reform Act
Proposed changes are pending in the valuation and procedures governing leasehold extension via the above proposed Act of Parliament. These have received Royal Assent but have not yet come into effect and an implementation date is not known. The Leasehold and Freehold Reform Act recently received Royal Assent which will significantly change the valuation of lease extension premiums once enacted. However, most of the advice that is available claims that further legislation is required in order to enact the changes which the current Government expects will be completed in 2025/6. There remain possibilities that the above expected process could take much longer or that the legislation that is required fails to materialise at all, preventing or delaying implementation. There are therefore risks in waiting for the changes to take effect in that they may not occur or may be delayed. The main changes brought by the Act as they relate to the Extension of Leases are: abolishing the "marriage value" element of a valuation. This often forms a significant part of the cost for lease extensions where the remaining term is less than 75-80 years. Other changes also include the abolition of the two-year qualifying criteria for new leaseholders and increasing the new extended term from the current 90 to a proposed additional terms of 990 years. Leaseholders and freeholders are to pay their own legal and valuation expenses incurred in the process.
Depending on your circumstances and the length of the lease’s in question, you will need to decide whether an application for a lease extension is better placed now, under the existing law or whether you should instead delay the process in order to benefit from the implementation of The Leaseholder and Freeholder Reform Act and its above changes. At present and until changes brought about by the Act are enacted, leases remain capable of extension via the existing legislation. We can provide above a valuation based on existing regulations and in addition an estimate figure based on the special assumption that marriage value is removed and the extension is 990 years (which they are not at this time). We provide a single free update to your calculations within one year of the initial valuation date in the event that changes are enacted or if you do not settle your extension.
PRIVACY & CONFIDENTIALITY
Email: bookings@appraisalsurveyors.co.uk
LEASEHOLD EXTENSION VALUATION, NEGOTIATION AND TRIBUNAL REPRESENTATION
A formal RICS Red Book Valuation is often required in order to ascertain the premium that you should expect to pay or receive for a residential lease extension. In brief a leaseholder will qualify if:
- Ownership exceeds two years. There is no residency requirement and the flat can be held in a company name.
- The original lease was granted for a term greater than 21 years at a low ground rent.
Should you require a quotation for our Leasehold Extension Services, please contact us providing the address and if known the number of years that remain on the lease. We will either arrange to inspect the property but can also provide and estimate of the premium that you should expect to paywithout an inspection although accuracy can sometimes be affected. The valuation of lease extension, negotiation and settlement of the premium payable / receivable for a standard building is described below. Once you have accepted our quotation and we have received your payment, the report will be prepared and the property will normally be inspected, the surveyor will send you the report within 4 working days.
Valuation
The surveyor will need to inspect the property for the Valuation or take full details from you if access is not possible for any reason. In all cases, brief details are also required from your lease to determine how many years remain and we also need to know the level of ground rent payable. Ground rent sometimes rises during the term of the lease (eg £100per year for 33 years, then £200 per year for 33 years then £300 per year until the end of the lease) or may be subject to regular reviews using the Retail Price Index. If you do not have this information or a copy of the lease then we can obtain basic details from the land registry at no cost to you. If you have received or sent a notice or are considering an offer that has been made, you should provide this to us.
Once the inspection has been carried out, we will send you the valuation report to enable your decision on how much to offer within the relevant notice that is served. Many leaseholders and freeholders negotiate directly regarding the size of the premium payable however a negotiation service is offered if required. A report listing recent local sales for similar properties will be provided with your valuation together with detailed calculations of each element of the extension premium. This is to enable you to discuss property values and other factors directly with your freeholder with a view to reaching agreement directly regarding the premium payable, hopefully without further involvement of a surveyor.
Negotiation
Should the premium remain in dispute, negotiations with your freeholder’s or leaseholder’s surveyor can be undertaken on your behalf. This involves exchanging valuations and carrying out a detailed analysis of further comparable sales information to ascertain the elements of each valuation which can be agreed, those which remain in dispute (if any) and if the level of premium is capable of agreement without a hearing. The premium offered will need to match the valuation figure advised for such negotiations to be possible although every attempt is made to secure a lower premium.
Tribunal Representation
Whilst often successful, reaching an agreed settlement is not always possible and the matter may still need to be referred to a tribunal thereafter with each party submitting their evidence and attending the tribunal. It is advisable in terms of negotiation strategy to apply to the tribunal for a hearing as early as possible and cancel the application if agreement is reached.
We can offer Tribunal Representation service only in conjunction with the negotiations. This service includes preparation of paperwork and attendance at tribunal hearing/s. Whilst it is common for negotiation purposes to apply for a hearing date when parties are far apart on the premium amount but it is rare that a case would actually reach hearing stage, applications being cancelled when a premium amount is agreed.
POSSIBLE CHANGES TO LEASEHOLD REFORM - Leasehold & Freehold Reform Act
Proposed changes are pending in the valuation and procedures governing leasehold extension via the above proposed Act of Parliament. These have received Royal Assent but have not yet come into effect and an implementation date is not known. The Leasehold and Freehold Reform Act recently received Royal Assent which will significantly change the valuation of lease extension premiums once enacted. However, most of the advice that is available claims that further legislation is required in order to enact the changes which the current Government expects will be completed in 2025/6. There remain possibilities that the above expected process could take much longer or that the legislation that is required fails to materialise at all, preventing or delaying implementation. There are therefore risks in waiting for the changes to take effect in that they may not occur or may be delayed. The main changes brought by the Act as they relate to the Extension of Leases are: abolishing the "marriage value" element of a valuation. This often forms a significant part of the cost for lease extensions where the remaining term is less than 75-80 years. Other changes also include the abolition of the two-year qualifying criteria for new leaseholders and increasing the new extended term from the current 90 to a proposed additional terms of 990 years. Leaseholders and freeholders are to pay their own legal and valuation expenses incurred in the process.
Depending on your circumstances and the length of the lease’s in question, you will need to decide whether an application for a lease extension is better placed now, under the existing law or whether you should instead delay the process in order to benefit from the implementation of The Leaseholder and Freeholder Reform Act and its above changes. At present and until changes brought about by the Act are enacted, leases remain capable of extension via the existing legislation. We can provide above a valuation based on existing regulations and in addition an estimate figure based on the special assumption that marriage value is removed and the extension is 990 years (which they are not at this time). We provide a single free update to your calculations within one year of the initial valuation date in the event that changes are enacted or if you do not settle your extension.
PRIVACY & CONFIDENTIALITY
