Lease Extension Calculator - London

Lease Extension Cost Calculator

By extending your lease, you could add a significant sum to your property’s value while securing an extra 90 years on your lease with no ground rent. However, extend your lease too early, and your costs could be higher than the increase in value. Extend too late, and your lease extension may be impossible to mortgage. Our leasehold extension calculator can help you decide whether now’s the right time to extend your lease. The approximate cost of extending your lease as well as learn more about factors that affect the total price, what to expect during this process and how a surveyor can help you. Please enter your details into the lease extension calculator for London and Surrey to find out how the approximate costs for extending your lease will be.

Lease Extension Calculator

Why you should consult a Chartered Surveyor?

Maximising the financial benefit from extending your lease is all about timing. If you have less than 60 years remaining on your short lease, it may be virtually impossible to remortgage. If you have between 60 and 70 years remaining, there may be very little financial benefit to realise. You should consider extending your lease if you’re approaching the 80-year mark, but as each case is unique, it’s worth getting impartial advice from a qualified surveyor before taking action.

Please remember that our calculator can only estimate the premium for a lease extension on your flat and doesn’t take into account the landlord’s fees for which you are liable. You’ll also pay a stamp duty if the lease extension costs over £125,000. Therefore, the figure provided by our calculator should only be used for initial consideration purposes.

You shouldn’t use our calculator as evidence in court, nor should you take any action regarding your lease extension until you’ve consulted a professional surveyor and/or solicitor.

When assessing lease extension values, evidence of similar flats in the same area is usually the main priority. This requires local knowledge and experience that is beyond the scope of our lease extension cost calculator. If you need advice from a trusted, experienced and local chartered surveyor, don’t hesitate to call us on 020 3598 6730.

Lease Extension Cost

As you might expect, the size and location of your dwelling, lease terms and proposed length of extension have a significant effect on the total price of your lease extension. However, other fees that you should account for when determining the cost benefits of a lease extension include:

  • Marriage Fees

Generally speaking, the longer you wait to extend your lease, the more expensive it will be. When your remaining term falls below 80 years, there could be a significant increase in costs due to the ‘marriage fee.’

Because the value of your property increases when the lease is extended, your landlord is entitled to half the value of the increase. This is what’s known as the marriage fee. If you want to avoid paying the marriage fee, you need to extend your lease before the remaining term reaches 80 years.

  • Landlord’s fees for which you are liable

When calculating the total cost of your lease extension, you need to bear in mind the landlord’s fees for which you will be responsible. For example, you’ll most likely be liable to cover the costs of your landlord’s solicitor and surveyor fees, provided they’re ‘reasonable.’ We recommend adding approximately £2000 to the initial cost provided by our lease extension calculator to gauge an estimate of the total price you’ll need to pay.

If you think your landlord’s fees are unreasonable, you should talk to a licensed solicitor or chartered surveyor, who can tell you which steps to take to dispute the fees.

  • Compensation

If your landlord’s interest in your property or any adjoining leaseholds reduces in value due to your lease extension, you’ll need to pay compensation. In most cases, given that your landlord will still own your freehold, you won’t be liable to pay compensation. However, loss of redevelopment potential could result in a claim. Again, we recommend consulting a qualified professional, such as a solicitor or surveyor, to find out whether you may need to pay compensation.

  • Formal vs Informal

As mentioned above – there are clear and strict guidelines that both parties must follow if you wish to formally extend your lease. However, you can enter into an informal agreement with your freeholder, removing the need to follow the procedures of the act. If you’ve only just purchased your leasehold, your freeholder reserves the right to deny an extension, but they will rarely do so. This is just one example of when entering into informal negotiations can be beneficial.

  • Your Legal Rights

Provided you’ve owned your leasehold flat for a minimum of two years, your freeholder must grant an extension. You don’t need to have lived in the flat for the two years for this right to apply. When you extend your lease, it will most likely be for an additional 90 years.

  • The Procedure

If you choose to enter formal lease extension negotiations, you must first serve your landlord with a Section 42 Notice, which details your opening offer and is usually prepared by a solicitor on your behalf. Your landlord must respond to the Notice within two months. If you and your landlord can’t reach an agreement, you can refer the matter to a Leasehold Valuation Tribunal (LVT). Your solicitor will provide guidance should you find yourself in such a situation.

Leasehold Reform, Housing and Urban Development Act 1993

This act means, by law, landlords/freeholders must allow leaseholders to extend their leases, provided they’ve owned their leasehold for at least two years. In practice, you can usually extend your lease at any time by reaching an informal agreement with your freeholder.

Lease Extension Advice

Both you and your landlord must follow strict procedures and timeframes when you wish to extend your lease, assuming you choose to negotiate formally. The procedures outlined under the Leasehold Reform, Housing and Urban Development Act 1993 exist to protect your legal rights, but you don’t need to follow the guidelines if you wish to enter informal negotiations, as discussed below. The following lease extension advice will help you understand the lease extension process, but we’re only a phone call away if you have any questions.

Sara Thomas
09:07 19 Jan 21
The homebuyer's report carried out by Harding Chartered Surveyors was clear informative and timely. The level of detail was just what I needed in order to appreciate what the property needed doing and to help me with my decision to proceed with the purchase process.
Aimee Glensor
19:09 08 Jan 21
Really helpful, made the process easy and really efficient service even though it was over the holiday period. Would def recommend / use again
Claudio Mascolo
18:24 30 Nov 20
Kate is very responsive and also took time to advise me on the phone at the very beginning. Scott Ingham did our report. It was thorough and informative. Felt in safe professional hands throughout.
John Simmons
15:53 29 Oct 20
Martina Glaser
17:56 28 Oct 20
Scott completed a survey for me on a flat purchase and both he and Kate were great - very quick to respond, knowledgeable, thorough and happy to address any additional questions I had. Would definitely recommend and use them again.
Bene Walters
10:47 05 Oct 20
I requested Harding to provide a valuation for a lease extension. Albert Wellington was in charge of my property and he was extremely professional and helpful in addressing all my concerns. I would recommend him and the company with no hesitation.
Claire Brown
14:17 19 Aug 20
A very efficient, timely and thorough service for us, as we go through the house buying process. I'd definitely use them again.
Nicholas R.
10:05 23 Jul 20
Very satisfied with service. Report was delivered promptly and provided the information we needed.
Richard Denison Gay
14:49 02 Jun 20
Excellent service; professional, helpful, communicative and courteous as well as relatively quick. I would highly recommend.
Marianna Ciampa
14:25 30 Jan 20
Very efficient and professional. I had my survey few months ago before buying my house and I am still following the advice from the survey to fix and repair what needed. I dealt with Scott Ingham and I think he worked very accurately and checked everything very carefully. Highly recommended.
Amel Ahmed
16:15 13 Nov 19
Needed a valuation for a property purchase and can honestly say the service was 1st class from start to finish. Queries were dealt with promptly and followed up via telephone to make sure I was happy with the responses.The team are extremely knowledgeable.Thank you Kate, Albert, David and the rest of the team I will definitely use the company again.
Millie Jones
16:07 30 Oct 19
Harding's were great - very responsive, gave a very clear and detailed report and were happy to run through their comments with me over the phone.
Emma Goldschmidt
16:21 01 Oct 19
Brilliant thorough service!
Jennifer Smith
11:12 30 Aug 19
Harry Coaker
09:46 22 Aug 19
Dealt with James Brook, very efficient and professional, James had the report sent out to us within 24hrs. would highly recommend.
Karen Royal
21:33 14 Aug 19
David Good
10:34 20 Jul 19
Harding Chartered Surveyors are a very professional business who handled a challenging task for us with ease. I highly recommend them and will be using their services again.
Karen Ng
22:30 01 Jul 19
Very efficient service and very detailed report. We are very satisfied.
Lily Kwong
10:38 24 Jun 19
Really quick turn around and professional service.
Sue Hodgkins
16:42 20 Jun 19
Neill Ghosh
14:22 11 Jun 19
Have used for years and always been very happy. Competitive on service and always good on deadlines and quality. Recommended.
tom binks
17:56 09 Apr 19
Kevin Loughlin
20:27 28 Mar 19
The surveyor turned up on time as planned to survey the roof, both inside and out, then was happy to discuss it all with us afterwards. Bit tricky in high winds. Report arrived 2 days later, just what we needed. Professional and thorough. Recommended.
Jon Brennan
09:44 01 Mar 19
Quick, responsive and very thorough. Would definitely recommend Hardings to others, and will come back to them the next time I need a survey completed.
Abi and Andy La Fontaine
20:57 20 Feb 19
Quick, efficient and excellent service. Came as a recommendation from a friend and we’d happily recommend too.
Bradley Roth
01:56 16 Feb 19
Giulio Pepe
16:25 16 Dec 18
Thorough and professional surveyors. Very happy with their service. Highly recommended.
Margaret Rowley
16:09 03 Dec 18
Simon Wilson
15:54 10 Nov 18
Good, thorough, and promptly scheduled homebuyer survey in Fulham. The surveyor called me and explained everything clearly.
Daniel Vernazza
10:41 29 Apr 18
I highly recommend David. Very good technical knowledge. He was always available for our questions, which included a detailed call on the same day as the survey. The written survey report was clear, detailed and included pictures and estimates of the cost of repairs.
James Palairet
11:16 09 Jan 18
David gave us a fantastic service and has been a huge help during our property purchase process. We have had 2 surveys carried out, both of which were arranged very promptly. Thorough and extremely useful telephone calls and full written reports were received shortly afterwards. David's reports and advice have been invaluable to us.
Sarah Dixon
14:13 08 Jan 18
I have worked with David and his team as a buying agent for many years now. The service they offer is an excellent one, timely with a commonsensical approach. I would recommend them to anyone.
William Sharples
08:57 05 Oct 17
James provided a very professional and thorough service, highly recommended.
Elif Erdine
14:30 04 Oct 17
Very experienced firm and friendly staff. Highly recommended.