Lease extension premium?

Reply to the comment left by Tony Phillips at 01/06/2023 – 00:18
I’m not totally sure but you need a specialist to advise you. A property transaction has different rules to a general contract. Whoever you approach to draw up the contract should advise you, but choose a specialist especially as the law has just changed

I have retired from practising in this area and urge you to take professional advice from a valuer who specialises in this type of advice (look at ALEP – Association of Lease Extension professionals- both valuers and solicitors), or you may find a specialist locally. It is not compulsory for practitioners to be members of ALEP.
Lease extensions can be agreed formally or informally (there are pros and cons for each on timescale and professional fees), and you can look on the leaseadvice.org website which gives a useful summary of the process.
If you are selling, you can serve the required notice to the freeholder under the formal process (S42), which can be assigned to the purchaser, so that you don’t have to complete the lease extension yourself. However, not all purchasers would want to buy on that basis, so you may limit your market, but it may appeal to an investor who would prefer to acquire the property at a lower value reflecting the short lease and do the negotiations himself.
Estate Agents sometimes like to give you a ‘figure’ for lease extensions – in my experience they are always incorrect, so are not a substitute for proper professional advice.