Lease Extension Calculator Information
The above three figures should give you a reasonably accurate guideline to the likely premium that a Leasehold Valuation Tribunal would calculate using statutory methods.
How is your lease extension cost calculated?
1Freeholder's lost ground rent = £3,291
Ground Rent: £200 per annum
Years Purchase factor for 75 years @6%: 16.46
Freeholder's Ground Rent entitlement: £3,291
2Reversionary Interest = £6,470
Value of the leasehold property if it was extended by 90 years: £125,000
Deferred for 75 years at a rate of 5%: £6,510
Deferred for 165 years at a rate of 5%: £40
Diminution in landlord's value: £6,470
3Marriage Value = £1,919
This only applies if the existing lease term has less than 80 years remaining.
Tenant's future interest: £125,000
Landlord's future interest: £40
Landlord's and Tenant's future interest: £125,040
Tenant's current interest: £111,401 using relativity of
Landlord's current interest: £9,801
Landlord's current interest: £28,962
Landlord's and Tenant's current interest: £121,203
Difference between future and current interests: £3,837
Marriage value is half of the above: £1,919
Adding the 3 factors together:
Total Lease Extension Cost = £11,680 + Our Legal Fee
About our lease extension calculator
Our lease extension calculator outcomes imitate quite a close estimation, i.e. within +/- 3% of the real cost of lengthening your lease in agreement with the rules, common law cases and statutory needs of evaluation. It is noticeable that several reviewers practised the process with a minor difference in calculating the probable premium. Our proficiency tells us that considerable proportions of evaluators are not following the strict rules and regulations while figuring that Leasehold Valuation Tribunal (LVT) has made. Our calculator follows the rules completely delivering tremendously exact outcomes.
Disclaimer: Our lease extension calculator tool may be the most accurate freely available (without cost), but we ask our users to kindly not rely on our results, they are provided for guidance only.