Leaseholders can significantly increase their leasehold value by extending their lease, but understanding the costs, responsibilities and requirements is crucial. For freeholders, complying with the law while profiting fairly can be challenging when negotiating with leaseholders, but both parties can reach an amicable agreement with accurate leasehold enfranchisement reports.
At Harding Chartered Surveyors, we produce high-quality and impartial lease extension valuation reports for leaseholders and freeholders in all areas of London. With our reports, both parties can agree on fair terms, ensure the sale process goes smoothly and protect their investment.
Call us today to discuss lease extension reports and valuations with a RICS registered valuer directly.
What is a Leasehold Enfranchisement?
Leasehold Enfranchisement factors the property’s market value but also include assumptions based on statutes and previous court tribunals. Simply put, our reports detail the premium that should be paid to the freeholder and the worst and best case scenarios for both parties.
We estimate lease extension premiums by calculating:
- Ground rent losses
- Marriage value
- The reversion’s deferment
- Any required compensation
Our RICS registered valuers work independently of lenders and banks, meaning you can trust that we produce impartial reports to benefit freeholders and leaseholders only.
When Should I Extend My Lease?
In most cases, leaseholders don’t benefit financially from extending leases with 100 or more years remaining. However, while potentially highly profitable, extending leases with less than 80 years remaining can cost tens of thousands. You should seriously consider extending your lease or calling us for advice if you’re approaching the 83-year mark.
Freeholders usually profit the most from extending leases with 80 years or less remaining. However, freeholders are legally obligated to grant almost all leaseholders with at least two years of ownership a 90-year extension.
The benefits of Leasehold Enfranchisement reports for leaseholders
Leaseholders can use our Leasehold Enfranchisement reports to:
- Understand the various costs involved with lease extensions
- Extend leases when it makes financial sense
- Negotiate fair terms with the freeholder
- Raise and challenge disputes
- Plan the future of their finances accordingly
How lease extension valuations can benefit freeholders in London
With an accurate lease extension report, freeholders can:
- Gain an insight into the value of their holding
- Set fair prices for lease extensions
- Challenge or raise a dispute
- Protect their investment