Will I have to pay more to extend my lease because I’ve improved my flat?

by The Chartered Surveyor

Question

I have recently renovated my flat, and I am worried that this might mean that it is now more expensive to extend my lease. It seems rather unfair that I should lose out on account of having improved my home. Will this have much of an impact on the cost of a lease extension?

Answer

This is a common concern of leaseholders who have made improvements to their homes. The basis of the valuation is set out in Schedule 6 of the Leasehold Reform, Housing and Urban Development Act 1993. The legislation says that improvements made by the tenant or a predecessor in title are to be disregarded for the purpose of calculating the premium. The fact that you have recently renovated your flat will therefore not influence the premium payable to extend your lease.