Calculator – Appraisal variables: Lease Extension

Appraisal variables: Lease Extension

11-80 years

Valuation date:* (dd-mm-yyyy)

Lease Expiry:* (dd-mm-yyyy)

Years

Ground rent

Yield

Deferment rate

The field value in the equations would be its decimal representation. Ex. 10% would be 0.1

Extended lease value of Flat

Relativity

Existing lease

The field value in the equations would be its decimal representation. Ex. 10% would be 0.1

Extended lease

The field value in the equations would be its decimal representation. Ex. 10% would be 0.1

Lease Extension Premium

Step 1

Diminution in Value of the Freeholder's Interest:
1.01 Value of freeholder's interest before Extension:

YP (single) - 48.00 years @ 6.00%

YP (single) £ (Total Value Amount)

Reversion in the flat (unimproved)

PV £1 - 48.00 years @ 5.00%

PV £1 - (Total Value Amount)

less

1.02 Value of freeholder's interest after Extension:

138.00 years

PV £1 - 138.00 years @ 5.00%

PV £1 - (Total Value Amount)

Diminution in Value of the freehold's Interest

Step 2

Freeholder's Share of Marriage Value
2.01 Value of Combined Interests post extension

Unimproved value of extend lease

Value of freeholder's interest after grant of lease extension

compared with:

2.02 Value of Combined Interests before extension

Unimproved value of existing lease

Value of freeholder's interest before grant of lease extension

22.03 Combined gain on grant of lease extension

Freeholder's share of any Marriage Value

The field value in the equations would be its decimal representation. Ex. 10% would be 0.1

Freeholder's share of any Marriage Value - Total

Step 3

3.01 Premium payable for the grant of lease extensionFreeholder's share of any Marriage Value - Total