
Lease Extension Valuation
Lease Extension Valuation Services in Manchester Valuation
Lease extensions can be quite daunting, especially for leasehold properties here in Manchester. In such cases, Lease Extension Surveyors are on hand to infuse the process with their expertise in leasehold property and to help guide you through to the successful completion of your lease extension.
Leaseholders can sometimes increase the duration of their leases. These people are effectively granted new terms that allow them to occupy the same space for a longer time. The basis for this is the Leasehold Reform, Housing and Urban Development Act, which sets the terms under which a leaseholder may—at the leaseholder’s option—extend the duration of a lease. Importantly, this law assigns a standard value to the lease extension that is quite low. The cost of the extension is more reasonable above the 80-year threshold.
The lease extension surveyor is responsible for assigning a correct valuation to the leasehold property so that funds can be efficiently allocated from the leaseholder to the freeholder for the purpose of securing a leasehold extension. The surveyor carefully and thoughtfully assesses the property using techniques that are accredited by the Royal Institution of Chartered Surveyors (RICS). The assessment determines the leasehold extension premium. To arrive at that figure, the surveyor uses appropriate and accepted valuation methodologies and tools, including the Valuation Office Agency’s own tools.
How to Extend a Lease in Manchester?
A surveyor’s valuation plays a key role in a leaseholder’s negotiations with a freeholder to extend a lease. These negotiations can be complex because they involve several significant financial and legal matters. For example, in order to extend a lease, a leaseholder must serve a Section 42 Notice to the landlord, which necessitates proper working knowledge of both the procedures and the relevant law. Working together, a leaseholder’s solicitor and a surveyor then use the lease extension valuing to make the freeholder a deal, which is based entirely on what the leaseholder is willing to pay in the first place. The length of the lease—whether it’s a short or long one—plays a big part in arriving at that outcome.
The negotiations are not always simple. They can become quite complicated when disputes arise over the lease extension premium amount. Our lease extension surveyor represents you at a Tribunal or County Court to restore your rights as a leaseholder and to negotiate a fair and reasonable lease extension premium.
A surveyor in Manchester who specializes in lease extensions is a member of the Royal Institution of Chartered Surveyors (RICS) and knows the ins and outs of extending the leases on leasehold properties, be it residential flats or commercial buildings. When you hire a lease extension surveyor, they prepare the necessary paperwork; they make sure the legal side of the equation is understood; and they coordinate the parties involved in your sale, the re-mortgaging of your property (if that pertains to your situation), or the accomplishment of the lease extension itself.
Valuation of Lease Extensions for Manchester
Determining the value of a property is very important during the process of extending a lease. It defines the costs of the deal therefore is important to get right. At its most basic, the valuation step tells the lessee how much he or she must pay to extend the lease for 90 years. A surveyor who specializes in lease extensions and is familiar with the local Manchester market will best serve a client in valuing a lease extension.
Qualified lease extension surveyors are available in Manchester who provide expert advice on extending leases for leasehold properties. They are chartered surveyors and members of the Royal Institution of Chartered Surveyors (RICS). They help with leasehold valuations, deal with freeholders, serve legal notices, and represent clients at tribunals. They are absolutely vital to the lease extension process and to ensuring that leaseholders can navigate that process confidently. They are also vital to making sure that extending a lease is not a legal minefield but instead a simple affair that secures both the value and the term of one’s property.
What constitutes a lease extension valuation?
The valuation for leasehold extension involves the estimated market value of the Manchester property. It encompasses presumptions that are based on statutory law, as well as decisions made by courts and tribunals. In essence, the reports yield a figure that represents a premium to be paid to the landlord or freeholder. Moreover, the reports present a best-case scenario and a worst-case scenario for both parties involved.
In calculating the premium for leasehold extension, the valuers take several factors into consideration:
- The reduction in income from the ground rent
- The addition of marriage value
- The deferment of reversion
- Other effects on value or other losses
Valuers, who are registered with RICS, provide independent and impartial reports for the benefit of leaseholders and freeholders being valuer under the 1967 Act and its subsequent amendments. They do not work for lenders or banks, and their reports are guaranteed to be unbiased.
Advantages of a Lease Extension Valuation in Manchester, London, Bristol, Birmingham, Manchester & Cardiff
Lease Extension Valuation reports are used by Leasers to:
- grasp the financial implications of lease extension
- extend the lease when ability and situation permit
- negotiate with the freeholder for reasonable terms
- resolve conflicts
- budget for the finances
The Lease Extension Valuation report helps freeholders in various ways. They use it to:
- determine the freehold value
- establish the negotiation and working figures to determine a price for the extension that is fair to both sides
- work out any difficulties arising in the negotiation process
- protect your investment against any potential leasehold-related problems
Extending My Lease
For leases that have 100 years or more left, there is generally no financial benefit to extending them. Yet, for those with under 80 years remaining, extending the lease can be very beneficial and, in some cases, financially necessary. The law entitles leaseholders (who have owned the flat for at least 2 years) to a 90-year extension. With so many years in hand, financial wisdom dictates that leaseholders should begin the process of extending their lease.
Understanding Section 42 Notice
The formal paper asking for the lease to be extended is called a Section 42 Notice. This is a document that comes to us from the Leasehold Reform, Housing, and Urban Development Act 1993. The Act gives leaseholders the right to add not less than 90 years to their leases and to reduce the ground rent to £0.
To issue a Section 42 Notice, the person doing the issuing must meet certain conditions.
- They must have owned the lease on the property for at least 2 years.
- They must be the owner of a lease that is at least 21 years long.
The notice must contain the particulars of the leaseholder, including the full name and address of the leaseholder, a description of the property, the proposed premium for the lease extension, and the terms on which the lease extension should be affected.
Once the freeholder has been served the notice, they have a statutory period within which to respond. The notice that they serve in reply is known as a “Section 45 Notice” (counter-notice). This notice will either agree to the terms included with the lease extension notice or propose different terms.
Issuing a Section 42 Notice is a legal process, so it is highly recommended that leaseholders obtain independent legal advice when serving one. There are also costs associated with this, including professional fees and a deposit payable to the landlord.
How Do I Go About Extending My Lease?
In the UK, the procedure for extending a leasehold can seem complex. This perception, however, is misleading. The process is quite straightforward if broken down into simpler steps:
- Eligibility: to be eligible, you must have owned the lease for a minimum of 2 years. Moreover, the lease you hold must have been granted for an original term of at least 21 years.
- Seek Advice: you should seek the professional advice of a solicitor or chartered surveyor who specializes in leasehold matters. The issues surrounding lease extension are fraught with legal and financial complexity, and expert guidance is invaluable.
- Valuation: the next step is to instruct a chartered surveyor to undertake a valuation of your lease. You will need to know this figure and, even more importantly, understand its implications before you can begin to seriously consider the prospect of extending your lease.
- Section 42 Notice: the first step is to prepare and serve a Section 42 Notice on the landlord. This is a legal document that specifies that you wish to extend your lease. It sets out the grounds for your application and provides the proposed terms for the extension. The Section 42 Notice must be served on the landlord in a prescribed manner and must satisfy all legal requirements to be effective.
- Counter-notice from the landlord: the landlord has 2 months to counter the lease extension request. They may do this by serving a counter-notice that states either their acceptance or disagreement.
- Negotiating|: if no compromise is reached within 6 months of the issuing of the counter-notice, you may apply to the First-tier Tribunal (Property Chamber). The Tribunal will determine the terms of the lease extension. A new lease will then be drawn up and completed.
- Land Registry: the newly created lease should therefore be recorded in the Land Registry.
Remember that this can be a lengthy process and one with significant legal and financial impacts. It’s wise to consult a professional before you dive in so you can have a good grasp of the clear path ahead and the potential for things to go sideways if you aren’t careful.
Get in Touch
Manchester’s leaseholders have dedicated professionals helping them with the intricate workings of the current lease. These professionals help leaseholders understand the current lease and what it means for them. They also help leaseholders understand their rights and responsibilities regarding the extension process. The lease extension itself is quite straightforward. It entails adding 90 years to the unexpired term of the lease and paying a one-time premium for the extension. The premium, however, is based on a “valuation” of the lease and is, therefore, somewhat slippery in construction. I have been told that the cost of the extension can vary considerably depending on who does the valuation.
Clients who seek a statutory lease extension or a 90-year lease extension require the services of both a surveyor and a solicitor. The solicitor gives notice to the landlord, asking him to grant the lease extension. When the landlord does not agree to the extension, your solicitor in Manchester must apply to the county court for what is essentially an order to force the landlord to comply. The team is highly experienced at what they do, and offer a professional lease extension service. Get in touch today to schedule your free consultation call.

Surveys of Commercial Property
If you’re thinking of acquiring, leasing, subletting, disposing of, or altering commercial premises in Manchester, you would be well advised to locate a surveyor skilled in the nuances of commercial building surveying – should you spot a defect in a commercial building you can use that information to negotiate an asking price for the property that’s considerably lower than what the seller originally wanted, or you can talk your way out of a bad deal altogether.
Our Manchester-based team of RICS-compliant commercial building surveyors is equipped to handle matters throughout Manchester.
Contact
Our team prioritizes client care above all else. We look forward to being in touch with you so you can instruct a surveyor in Manchester, London, Bristol, Birmingham or Cardiff. You can reach out to us easily. Just fill out our form, and we’ll get back to you with a free quote for your survey. All our surveyors are qualified as members of the Royal Institution of Chartered Surveyors (RICS) and we are one of the UK’s leading providers of building survey and valuation services:
- Accredited Professionals: Certified by organizations like RICS, CIOB, and RPSA.
- Customized Survey Reports: inspections to meet your specific requirements.
- Local Expertise: Deep understanding and specialized knowledge.
- Expert Guidance: Professional recommendations and support.
The property survey you commission will be carried out by an accredited professional. Your chartered surveyor will be a member of the Royal Institution of Chartered Surveyors (RICS) or the Chartered Institute of Building (CIOB), or will belong to some other industry-standard professional body. Rest assured; you will receive highest quality of professional service for your survey.