Looking for a solicitor and a surveyor with prior experience to help us extend our residential lease.
I've gone with the budget PPH suggest however not sure it's relevant in this case.
Two-part project: 1. Free quote on how much it will cost to extend the lease, best and worse case, along with any other fees payable including yours - if it makes financial sense proceed to part 2 2. Act on our behalf to extend the lease
We are the leaseholders of a ground floor maisonette in the Royal Borough of Greenwich in London. We moved in July 2016. The property has 97 years left on the lease (Lease started 22 June 1992). We currently pay £10 a year for ground rent and a service charge of £550. From what I understand we are eligible to extend the lease.
We purchased the property for £315k. We've recently had two estate agents over to value the property and unfortunately, the value hasn't moved much, if any at all, we purchased just after Brexit...
I have done initial research so can grasp the steps required to extend the lease but your expertise and prior experience is essential.
I have reached out to Greenwich legal team regarding the process and this is what I got back: Dear Matt,
Thank you for your email. Unfortunately, I do not prepare valuations for lease extensions and cannot provide you with a figure regarding a possible lease extension.
The process is governed by the Leasehold Reform, Housing and Urban Development Act 1993 (as amended by the Commonhold and Leasehold Reform Act 2002).
The formal process to exercise the right to acquire a new lease commences by the service of the tenant’s notice in terms of Section 42 of the 1993 Act on The Royal Borough of Greenwich (the Landlord). The Landlord will in turn serve a counter notice on the tenant in terms of Section 45 of the 1993 Act. There are several important issues the tenant needs to consider before completing and serving the tenant’s notice.
Checking eligibility To have the right to acquire a new lease the tenant should have been a qualifying tenant of the flat for the past two years. A person is a qualifying tenant of a flat under a long lease (a lease granted for more than 21 years). A tenant will not be a qualifying tenant if the lease is a business lease.
Assessing the premium payable The tenant will have to specify in his/her notice the premium which he/she proposes to pay in respect of the grant of the new lease. The appointment of a qualified valuer is strongly recommended in order to provide the tenant with an idea of the premium (purchase price) payable. In assessing the premium payable for the lease extension the diminution in value of the Landlord’s interest in the tenant’s flat will be taken into consideration as well as the Landlord’s share of the marriage value and compensation which might be payable to the Landlord for any loss arising from the grant of the new lease.
Grant of new lease Where the tenant of a flat has a right to acquire a new lease of the flat, subject to following the procedure as prescribed by the 1993 Act, the Landlord shall be bound to grant to the tenant upon payment of the premium (purchase price) a new lease for the flat substituting the existing lease, for a term of 90 years plus the remainder of the term of the existing lease at a peppercorn rent.
The terms of the new lease will be the same as the existing lease, but with such modifications as may be required or appropriate and in compliance with the terms of the 1993 Act.
Costs incurred in connection with the new lease In addition to the premium payable by the tenant for the grant of the new lease, where the tenant has served his/her notice on the Landlord he/she shall be liable for the reasonable costs incurred by any relevant person in pursuance of the notice for instant investigation, valuation for fixing the premium and for the granting of the new lease whether or not the tenant is successful in exercising his/her right.
At this stage, the Landlord’s legal fee and disbursements in connection with the grant of the new lease is estimated at £400.00. However, we may revise our legal costs if the matter becomes more time-consuming and/or complex than usual. Also, the Landlord’s valuation fee will be in the range of £250.00.
Please note this letter is not meant as a full interpretation of the law and it was written purely as guidance for tenants/leaseholders of the London Borough of Greenwich. We strongly recommend that tenants seek independent legal advice or instruct a solicitor (and surveyor) to represent them in exercising their rights under the Act.
