Accurate Lease Extension Valuation in London by Wimbledon Surveyors
You should get valuation advice from a professional lease extension surveyor as an RICS Registered Valuer, who would naturally be familiar with the Leasehold Reform, Housing and Urban Development Act, 1993 (as Amended), in a bid to extend the leasehold of your property.
If you are the owner of a leasehold property, the fewer years left on your lease, the less valuable it will be. Once a lease falls below a certain number of years, it will have to be extended before the property is sold and most mortgage lenders will only lend against a lease having a term of 70 years or more. This may be fine for you, but what about when you want to sell the property? If you do nothing about the lease you may well experience greater difficulties in selling should your lease eventually fall below 70 years, as there can be the presumption that a buyer can not get leasehold mortgage finance.
How a Lease Extension Valuation Works
The premium you pay to extend a lease is not plucked from the air: it compensates the freeholder for the deferred reversion, lost ground rent and – on leases already under 80 years – half of the marriage value. An RICS Registered Valuer calculates a realistic premium range and the evidence to support it, so you negotiate from strength rather than accepting the freeholder’s first figure.
The Statutory Route: Section 42
Qualifying flat owners can compel the freeholder to grant a 90-year extension at a peppercorn ground rent by serving a Section 42 notice under the Leasehold Reform, Housing and Urban Development Act 1993. The valuation underpins the premium you offer in that notice – pitch it too low and the notice risks challenge; too high and you overpay from the outset.
Informal vs Statutory Lease Extensions
Some freeholders offer informal deals outside the Act. These can complete faster but often carry higher ground rents or shorter terms – and the trade-offs are not always obvious. Our comparison of informal lease extension advantages and disadvantages explains the pitfalls; our valuers will tell you which route the numbers favour in your case.
Why the 80-Year Mark Matters
Once a lease drops below 80 years, marriage value applies and the premium rises sharply – and keeps rising as the term shortens. Mortgage lenders also become reluctant below about 70 years, which hits saleability. If your lease is in the danger zone, acting now is nearly always cheaper than waiting. See our answers to common questions about statutory lease extensions.
Enfranchisement and Buying Your Freehold
Extending is not the only option: qualifying leaseholders can join together to buy the freehold through collective enfranchisement, taking control of ground rents and management in one step. We value both routes side by side – and support buyers of short-lease flats with our guide to buying on a short lease. Request a lease extension valuation quote.
How a Lease Extension Valuation Works
Before you serve a Section 42 notice on your freeholder, you need to know what the lease extension should actually cost. Our RICS Registered Valuers calculate the statutory premium for adding 90 years to your lease at a peppercorn ground rent, taking into account your unexpired term, current ground rent, the value of the flat and the technical rates a tribunal would apply. You receive a clear report with a recommended offer figure for your notice and a realistic settlement range — so you negotiate from evidence, not guesswork.
The 80-Year Marriage Value Threshold
Once a lease drops below 80 years, marriage value becomes payable and the premium rises sharply — often by thousands of pounds, and the cost grows every further year you wait. If your lease is between 80 and 85 years, acting promptly is usually the single best financial decision you can make as a leaseholder. We prioritise urgent instructions where a lease is approaching the threshold.
What Determines Your Lease Extension Premium
- Unexpired lease term — the shorter the lease, the higher the premium.
- Ground rent — escalating or doubling ground rents increase the freeholder’s compensation.
- Flat value — the market value of your flat with a long lease.
- Deferment and capitalisation rates — technical rates that specialist valuers argue and tribunals decide.
- Marriage value — payable on leases under 80 years under current law.
Statutory vs Informal Lease Extensions
A statutory extension gives you 90 extra years, a peppercorn rent and a process the freeholder cannot refuse. An informal deal offered by the freeholder may look cheaper but often keeps or increases the ground rent and can leave you with an unmortgageable lease. We review informal offers against the statutory alternative so you can see the true cost of each route before committing.
Negotiation and Tribunal Support
After your notice is served, the freeholder’s surveyor will usually counter with a higher figure. We handle the negotiation for you, supported by comparable evidence and tribunal decisions. In the minority of cases that do not settle, our valuation is prepared to First-tier Tribunal standard from the outset, and our expert witness surveyors can present it. Buying a flat with a short lease? We can value the extension cost before exchange so you can negotiate the purchase price — and if you are considering buying the freehold with neighbours instead, see our leasehold enfranchisement service.
Frequently Asked Questions
The premium depends mainly on your unexpired term, ground rent and flat value. As a rough guide, extending at 85+ years unexpired is markedly cheaper than below 80 years, when marriage value applies. We provide a precise premium calculation and settlement range for a fixed fee before you commit to the process.
Often, yes — flats with under 80-85 years unexpired are harder to mortgage and sell at a discount. Alternatively, you can serve the Section 42 notice and assign the benefit of the claim to your buyer, which we can support with a valuation.
Typically 6-12 months from serving the Section 42 notice to completion, depending on how quickly terms are agreed. The freeholder has two months to serve a counter-notice, followed by a negotiation window before either side can apply to the tribunal.
Most flat owners qualify once they have owned the flat for two years, provided the original lease was granted for more than 21 years. Under leasehold reforms being phased in, the two-year ownership requirement is being removed — we can confirm your position when you instruct us.
Marriage value is the increase in the value of the flat created by extending a lease that has fallen below 80 years. Under current law the freeholder is entitled to half of it, which is why premiums jump once a lease crosses the 80-year threshold.