Ask The Experts

If your lease has fallen below 80 years then you are liable to pay the freeholder a fee, this is known as Marriage Value. This is because the value of a property with an extended lease is higher than one with a lease below 80 years, therefore the freeholder can directly benefit from this value increase (which they cannot if the lease is in excess of 80 years). They are allowed to demand 50% of the perceived increase in the value of the property, in addition to the other factors determining a lease extension premium! Needless to say, it’s in a leaseholders interest to increase the lease before it reduces to 80 years. If your lease is close to 80 years, speak to our team of experts for free advice on 020 8315 6901.

From a lease extension perspective a lease below 80 years is deemed a low lease, as it then becomes subject to Marriage Value. Many mortgage lenders consider anything below 80 years to be a low lease. Some lenders are more lenient, however the rate options available to you will be restricted.

We charge £2,500.00 plus VAT. This is a fixed fee and covers our time in managing the transaction from start to finish. In addition, this will cover us instructing the surveyor to produce a lease extension valuation report ready to submit to our olicitor so that they can submit the requisite Section 42 notice upon the freeholder. This will also cover your standard lease extension legal fees. In most cases there is no more to pay however if the freeholder instructs a solicitor to negotiate and the transaction becomes protracted, there may be additional fees for their time. This will be discussed with you throughout the process and you will be made aware of any potential extra costs.