a

Lease Extension Valuations and Enfranchisement Calculation process

by its nature Elise is a diminishing

asset so if you own a leasehold property

you'll want to protect the value of your

investment

fortunately under the terms of the

leasehold Reform Act you can compel your

freeholder grant you a 90 year extension

and to reduce the ground rate to zero in

return for the payment of compensation

to assist in agreeing the level of

compensation payable evaluation will

need to be prepared as the basis for

subsequent negotiations your surveyor

will first need to establish the capital

value of your property with a long lease

this will typically require a site visit

followed by a review of recent

comparable sales under the terms of the

act the valuation must disregard any

changes to the property since the lease

was granted to ensure that you're not

penalized for having made improvements

or extended once the long lease value is

confirmed the three elements which make

up the compensation figure can be

calculated these are 1 the current value

of the ground rates payable under the

existing lease to a sum to compensate

your freeholder for the fact that he

will not get the property back for an

additional 90 years 3 the marriage value

in simple terms marriage value is the

amount by which the property increases

following the lease extension and is

split equally between you and your

freeholder if the remaining term of the

lease is greater than 80 years the AB

determines that the marriage value is

removed from the compensation figure if

therefore becomes considerably more

expensive to extend the lease once the

remaining term falls below that critical

point once the valuation is complete you

have two options to arrange for your

solicitor to serve a formal notice on

your freeholder or to approach your

freeholder informally in the hope of a

swift resolution our specialist

Chartered Surveyors are available to

advise you on the cost of extending how

best to proceed and to negotiate with

your freeholders surveyor with a view to

securing you an extend

at least at a fair and reasonable price