Lease ext.- 59yrs. unexpired- calc. yield rate?

[JPHCCFC]

Im in the process of awaiting a price on a lease extension of my current property in Solihull. My lease has 59 years remaining. The lease company will look to extend the lease to 125 years. The house is a 2 bed ground floor maisonette. Ive been trying to calculate the figure i think is fair for the lease extension. I have used the formula from lease-advice.org. However i have a couple of questions to help me derive the figure:-

1) How can i calculate the Yield Rate?
2) How do i calculate the compensation from loss arising from the grant of the new lease
3) When the lease company return their lease offer - what sort of percentage do they generally over compensate - ive heard of people getting their lease extension from between 2-5k however my friend has just had his offer (he also lives in the same area and same property type) and they offered him 10k!
4) They have raised the ground rent from £36 pound per annum to 300 pound per annum, doubling every 25 years - is this 700%+ hike normal and acceptable???
5) legal and administrative costs of £595.00 is this a reasonable figure??

With the state of the current house price market i dont think an increase in lease will dramatically increase my house value thus the marriage value - possibly 5k tops!

Many thanks for any help or advice

Additional info about the company managing the lease:-

The company is Estates and Management Ltd based in London
Acting for Sidewalk Properties Limited

[Corinne Tuplin]

Hi there,

A statutory lease extension is for ninety years in addition to your remaining term on a peppercorn rent (i.e. one pence a year). Using this route there would, therefore, be no increase in Ground Rent. As you are aware, the cost is calculated using a statutory method which draws on external factors, such as approximate property price and location (as determining Yield Rate).

It is not a straightforward calculation by any means and 'marriage value' (applicable in your case) complicates matters even further. I would suggest that you request a valuation from a specialist to strenghten your negotiation power. At least then you will know how much an extension would cost on the most favourable terms. For further information on statutory lease extensions, please visit: http://www.proleagle.com/leaseextension.htm

Furthermore, I offer a lease extension valuation service at a cost of £60.00 (inc. VAT). Please contact me directly if you are interested in this service.

I hope this assists.

Kind regards,

CORINNE TUPLIN
DIRECTOR
PRO-LEAGLE
www.proleagle.com
corinne@proleagle.com