Calculate the premium payable to extend a lease in just a few simple steps with the Freehold Sale lease extension calculator. Professional lease extension valuations can be costly and take time, which is why we’ve built this free online tool. Whether you’re a leasehold property owner or a residential freehold landlord, this lease extension calculator will provide you with a quick and inexpensive method of estimating the cost to extend a lease.
The premium payable to extend a lease is calculated using four figures; the current market value of the property with a long lease, the start date of the lease, the original lease term (this is commonly 99, 125 or 999 years) and the annual ground rent payable. All you have to do is enter these details into the calculator below and you’ll receive an approximate cost to extend the lease for the leasehold property.
We’ve developed this lease extension calculator using current market data to ensure that the results are as accurate as possible but please be aware that any values provided are for guide purposes only and cannot be used in any court proceedings or at a tribunal. When you’re ready to proceed with a lease extension, you may wish to seek a professional lease extension valuation from a Chartered Surveyor.
When should you extend your lease?
You need to consider your circumstances and your reasons for extending your lease but generally it is advisable to extend your lease before it falls below 80-years. This is for two very important reasons:
An extension on a lease with less than 80 years remaining will be subject to an additional premium for Marriage Value. This premium will continue to increase each year, which means that the cost to extend your lease will escalate as the lease term decreases.
A low remaining lease term can also impact the saleability of your property as many lenders are unwilling to provide mortgages on such properties.
How do you extend your lease?
You are legally entitled to extend your lease once you’ve owned the property for two years or more. However, if you wish to extend your lease sooner, you may be able to come to a voluntary agreement with your landlord. To start the lease extension process, you can attempt to agree terms on a voluntary basis, or subject to having the right to do so, you are able to formally request a lease extension under Section 42 of the Leasehold Reform Housing and Urban Development Act 1993.