There is statutory method set out in schedule 13 of the 1993 Act which shows how the lease extension premium will be calculated if you are buying a plus 90 year extension on top of the existing term of your lease. This applies under the 1993 Act only. This is not so much of a ‘formula’ as an approach to …
How do I know what premium the tenant should be paying me to extend the lease?
If a Section 42 Notice has been served, this notice will state an offer figure. This is very much the starting point in negotiations as to the price to be paid. You should take professional valuation advice on the likely ‘fair’ premium from a qualified surveyor. You can always use a Lease Extension Calculator to determine whether the offer seems …
How can I find out how much my lease extension will cost?
This is a question for a valuer or surveyor who specialises in this area, but if you know the lease length and the current value of the flat and the ground rent schedule, then you can have a go at working this out approximately by using one of the calculators available online, like this one: http://www.bishopandsewell.co.uk/lease-extension-calculator/ These type of calculation …