When you extend your lease you will pay your freeholder in exchange for a longer lease. This is called the premium.
There are various calculations to establish the cost of the premium, but ultimately it will be negotiated between you and the freeholder
Leasehold renewal costs
When you extend your lease you have to pay your freeholder’s valuation and legal fees as well as your own.
You can negotiate with your freeholder as to what you believe is reasonable.
You will have to pay to have your property valued and the cost of your lease extension estimated
You will have to pay for a representative to negotiate with your freeholder
You will have to pay for your formal notice to be prepared and served, and for the draft lease to be reviewed and registered
You will have to pay various administrative charges. These include the cost of registering your lease at the land registry and having various checks made through the process.
If you can’t agree a premium with your freeholder during informal negotiations you can apply to have the premium decided at tribunal. This is really uncommon as it is expensive for both you and your freeholder. The price of going to tribunal is not included within our price.