A lease extension can protect the value and saleability of your flat, but the premium is only one part of the bill. A frequent question is: who pays lease valuation fees? In most statutory lease extension cases, the leaseholder pays for their own valuation and also meets the freeholder’s reasonable valuation costs. That can feel one-sided, but knowing it early lets you budget properly and avoid a costly surprise once the formal process is under way.
The position can differ where an extension is agreed informally, so the wording of any offer matters. A low headline premium is not necessarily the lowest overall cost if professional fees are unclear or left open-ended.
Who pays lease valuation fees on a statutory extension?
For a statutory lease extension in England and Wales, the leaseholder is normally responsible for two sets of valuation costs. First, they pay their own surveyor or valuer to advise on the likely premium and prepare the valuation evidence needed to support their claim. Secondly, they must pay the landlord’s reasonable professional costs arising from the statutory process, which usually includes the landlord’s valuer.
The landlord will commonly instruct a RICS-registered valuer to assess the premium and review the leaseholder’s proposed figure. Their valuer is working for the landlord, not as a joint expert, so it is normal for their view of the premium to be higher than the leaseholder’s opening position.
The key word is reasonable. A leaseholder is not expected to fund excessive charges, duplicated work or costs that have no proper connection to granting the new lease. However, a reasonable fee is not always a cheap fee. The complexity of the flat, the lease terms, the remaining lease length and the local evidence available can all affect the work required.
Under the statutory route, leaseholders also usually pay the landlord’s reasonable legal costs for dealing with the notice and completing the lease. Those costs sit alongside valuation fees. They should be budgeted for separately from the premium, your own solicitor’s charges, Land Registry fees and any mortgage lender requirements.
Why you need your own valuer first
It may be tempting to rely on the landlord’s valuation or to start the process with an estimate from an online calculator. That creates a weak negotiating position. A lease extension premium is based on legislation and valuation assumptions, not simply on what a flat might sell for.
Your valuer considers factors including the flat’s market value, ground rent provisions, the length of the existing lease, comparable evidence and marriage value where relevant. They can advise on a realistic premium range and, crucially, help you decide what figure to put in a statutory notice.
Putting forward an unrealistically low figure may save nothing. It can harden negotiations, increase the gap between the parties and make the process take longer. A sensible opening figure, backed by a professional valuation, gives you a credible starting point and helps keep discussions focused on evidence rather than guesswork.
Your valuer can also negotiate with the landlord’s valuer. Many lease extension cases settle through professional discussion once both sides have exchanged their calculations. That is often more efficient than allowing a disagreement to drift towards the First-tier Tribunal.
What the landlord can charge for
A landlord’s recoverable costs are limited to reasonable professional costs connected with the statutory grant of the new lease. In practical terms, this commonly covers the landlord’s valuation advice and their solicitor’s work in responding to the claim, checking title and completing documentation.
It does not give a landlord a blank cheque. Costs connected with tribunal proceedings are generally treated differently and are not ordinarily recoverable in the same way. Nor should a leaseholder be asked to pay a vague administration charge without a clear explanation of what it covers.
Before paying, ask for an itemised demand or invoice that identifies the professional instructed, the work carried out and the amount requested. If the fee appears disproportionate, take advice before accepting it. Challenging a charge without grounds can create delay, but paying an unexplained bill without checking can be just as unhelpful.
Landlords should also be clear from the outset. A transparent schedule of anticipated professional costs reduces correspondence, helps leaseholders make informed decisions and supports a more orderly transaction. For portfolio landlords and managing agents, that clarity is part of sound asset management rather than an administrative extra.
Informal extensions: fees are negotiable, not fixed
An informal, or voluntary, lease extension sits outside the statutory framework. The parties can agree the premium, term, ground rent and allocation of costs between themselves. That flexibility can be useful, especially where both sides want a quick agreement, but it also means the protections of the statutory route do not automatically apply.
In an informal deal, a landlord might ask the leaseholder to pay their valuation and legal costs, as they would under the statutory process. They might agree to share certain costs, or cover them as part of a commercial arrangement. There is no single rule. Everything depends on the offer and the negotiated terms.
Leaseholders should look beyond the initial valuation fee. An informal extension can contain provisions that look attractive in the short term but reduce value later, such as a continuing or escalating ground rent. A statutory extension normally provides a 90-year addition to the existing term and reduces ground rent to a peppercorn. The right route is not simply the one with the lowest upfront professional fee.
When are valuation fees paid?
Timing varies, but your own valuer is normally paid when you instruct them. Their fee should be agreed in writing before work starts. Ask whether it includes an initial valuation, advice on the notice figure, negotiations with the landlord’s valuer and support if the matter becomes more involved.
The landlord’s costs may be requested once the statutory notice has been served and the landlord has begun dealing with it. Some landlords seek a payment on account, while others submit their costs later in the process. Your solicitor can check that any demand is properly made and advise on the appropriate response.
Do not assume that withdrawing a statutory claim removes the bill. If the landlord has already incurred reasonable costs responding to a valid notice, those costs may still be due. This is one reason to obtain valuation advice before starting: it helps you move forward with a realistic plan rather than serving a notice before you are financially ready.
Budget for the full lease extension cost
The premium tends to attract the most attention, particularly where a lease is approaching 80 years. Yet the total cost of extending a lease is broader. A practical budget should allow for your valuer, the landlord’s valuer, your solicitor, the landlord’s solicitor, the premium, registration costs and any lender-related charges.
Costs can rise where the title is complicated, there are missing documents, the landlord’s ownership has changed, or the valuation evidence is disputed. A well-organised case will not remove every issue, but it limits avoidable work and gives both parties a clearer route to completion.
Leasehold reform is also changing the wider landscape. The Leasehold and Freehold Reform Act 2024 is significant, but not every proposed or enacted change takes effect at the same time. It is sensible to take current, case-specific advice rather than delay a decision on the assumption that future rules will automatically reduce your costs.
How to keep valuation costs under control
Start with a clear written quote from a lease extension specialist. It should state what work is included, whether negotiations are covered and what may trigger additional charges. The cheapest quote is not always the best value if it covers only a basic figure and leaves you unsupported when the landlord disputes it.
Give your valuer and solicitor accurate information early, including the full lease, any variation deeds, ground rent demands, service charge details and mortgage information. Missing paperwork creates repeat work and delay. If you are considering an informal offer, have it reviewed before you commit, not after terms have been accepted in principle.
A managed approach can also reduce the friction of coordinating separate advisers and chasing responses. Lease Plus 90 brings the valuation, legal and landlord engagement stages into a structured process, helping parties understand the costs, responsibilities and next actions from the start.
The fair answer is that leaseholders usually bear valuation fees in a statutory extension, including reasonable fees incurred by the landlord. The useful question is whether those fees are clear, proportionate and helping move your lease towards a properly documented outcome. Get that clarity before serving notice or accepting an informal offer, and you will be making the decision with control rather than pressure.
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