myleasehold were instructed to calculate the premium for a lease extension in July 2012. Mindful of our client’s costs, we recommended we carry out a desktop valuation (a valuation without a site visit). Our advice to our client, the flat owner, was that they explore the possibility of obtaining a lease extension without serving a formal Notice of claim, so as to save legal and valuation costs.
We reported a settlement premium of £24,000, and following negotiations with the Landlord we managed to secure a settlement at our reported premium of £24,000. Bearing in mind that our client was looking to sell the property once the lease had been extended, and therefore the timing and efficiency of the lease extension was crucial, we agreed a fixed ground rent of £150 per annum to offset the Landlord’s legal and valuation fees and to make the transaction more attractive to the Landlord.