Lease Extension Premium Calculator (United Kingdom)
Lease Extension Premium Calculator (United Kingdom): a planned Super Calculator tool. Stub page: the tool, its formula and a worked example are not published.
Lease Extension Premium Calculator (United Kingdom) is a planned calculator in the real estate section of Super Calculator, covering country mortgage regimes.
What this calculator will compute
Inputs: unexpired term (years), ground rent (GBP), flat value with a long lease (GBP), deferment rate (%) and capitalization rate (%).
Outputs: premium estimate (GBP), marriage value component (GBP), cost of delay per year (GBP) and term at which marriage value applies.
Formula, recorded as scope and not yet verified against a primary source: The premium to extend a residential lease combines the present value of ground rent forgone, the reversion value of the freehold discounted over the remaining term, and, where the unexpired term is under 80 years, marriage value representing the uplift in the flat value on extension. Valuation is governed by statute and yields are contested at tribunal.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.