Valuation Services

Valuing the Leasehold Extension / Purchase

The premium payable to the landlord consists of 3 main elements:

1. An amount to compensate the landlord for loss of ground rent during the remainder of the existing term;
2. An amount to compensate the landlord for not receiving possession of the premises at the end of the existing term (1 and 2 represent the landlords interest);
3. 50% of the Marriage Value; this valuation is relevant only for leases with less than 80 years unexpired, and is arrived at by deducting from the value of the extended / purchased lease the adjusted value of the existing lease and the value of the landlords interest. (In the case of a lease with more than 80 years unexpired term, there is no Marriage Value payable)

Arriving at a Fair Valuation

1. By Negotiation: the valuation procedures are pre-determined (see Valuing the Extension / Purchase) so the hope is that this will reduce or indeed remove the opportunity and possibility for dispute.
2. A resolution by the Leasehold Valuations Tribunal (or LVT). In the event of a dispute, the LVT will determine a case brought before it using the formula for valuing as laid down by the Act. Such a resolution will be based on what the LVT considers ‘reasonable’ and what each party is entitled to.
   The LVT is also at liberty to make a ‘costs order’ in the event that either party is acting unfairly or unreasonably.

Take a look at how we charge for our Valuation Service or contact us now to get an idea of the total cost to yourself.