A statutory lease extension extends the length of your lease by 90 years and reduces your ground rent to £0. In return for this extension you pay your freeholder a ‘premium’ – which is just the technical word for price.
Why do you need a surveyor to do a valuation?
The first reason you need a surveyor to do a valuation is to provide you with a really robust estimate of the premium you should pay for your lease extension – so you know what to expect.
A good valuation will include a high figure which is the most the freeholder can reasonably ask for based on the evidence available. It should also contain a low figure which is the price to aim for.
The second reason – which is perhaps more important – is that in order to negotiate the lowest premium you must have the evidence to support your negotiating position and challenge your freeholder.
What makes a good valuation?
In order to be able to negotiate effectively you need to have solid evidence of what the market value of your flat would be if it was sold with an extended lease. This is done by analysing sales of properties nearby.
If your lease is below 80 years, or if you have ground rent these will also factor into the cost of your premium. The valuer will do further analysis of other types of sales transaction to understand what impact they’ll have.
Your valuation should be conducted by a valuer who is up-to-date on the latest developments in leasehold tribunal decisions and has experience negotiating with freeholders.
Do I need an on-site survey?
Unlike a valuation for the purposes of selling or mortgaging, a lease extension valuation will always disregard the condition of your flat. They assume it’s in a basic, maintained condition.
There is usually sufficient information about your flat (and similar flats that have sold recently) to complete the valuation on a desktop basis.
Avoiding a site survey means your valuer can dedicate more time to collecting and analysing the mass of information available. We source information from the Land Registry, property portals, estate agents and auction sites for our valuations.
An exception is in the case of unique flats (for example converted houses) where there are no directly comparable properties. It is in these cases that it is sometimes necessary to inspect the property.
Our surveying service
At Homehold we provide accurate estimates of your lease extension premium with detailed evidence to allow us to negotiate the best price. Our work includes:
- reviewing your property title to check you’re eligible for a lease extension – if we find you’re not we’ll refund your money in full before doing a valuation
- reviewing the information available to ensure we can do a valuation remotely and if we can’t, conducting an on-site survey at no extra cost
- providing an estimate of the fair range for your lease extension and;
- a detailed report how we arrived at the figures and our negotiating position
- providing an estimate of what the freeholder is likely to request to cover their own surveying and legal fees, which you have to pay.
Once we’ve provided the report, if you have any questions or want to delve into the detail, we’re always happy to have a call or answer questions via email.
What comes after the valuation in the lease extension process?
Valuation is first stage of three stages in the process of extending your lease.
Stage two is the process of negotiating an agreement on the price of your lease extension, which in the case of a statutory lease extension is always started by sending a formal notice to your freeholder.
Stage three is to update the legal aspects of your lease to reflect your extended term and reduced ground rent. This needs to be carried out by a licensed conveyancer or solicitor.
Get it all in one place
We look after your lease extension from start to finish. Our mission is to make the process as inexpensive, as smooth and stress-free as possible for you, so we manage every step. You’ll deal with a single point of contact here at Homehold who will look after your case on your behalf.
We charge a fixed fee £650+VAT for our valuation and estimate stage, or you can do it as part of our full lease extension process which costs £1,950+VAT.