How Our Online Algorithm Models the Statutory Formula
Our online calculator applies the exact actuarial formulas used by chartered valuation surveyors:
1. Ground Rent Stream: Calculates the present value of all scheduled ground rent payments up to the lease expiry date, taking into account doubling clauses, index-linked reviews (RPI/CPI), or fixed steps.
2. Reversion to Vacant Possession: Discounts the freehold reversion value across your remaining lease years using the national standard 5.0% deferment rate.
3. 2026 Reform Mode: Toggles marriage value off in accordance with the Leasehold and Freehold Reform Act 2024, showing you the exact financial saving compared to the old 1993 regime.