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Leasehold property - permission to extend

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Hi, I am going through the same process at the moment and was quoted about £4200 for the plot. I pay £40 per year and the remaining lease is 960 years. I would be grateful if you could send me the sample letter and other information to my email at (eaauk at yahoo dot com).

 

It's on my work computer. I can send it to you when I return to work on the 3rd January. ☺

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Hi, I am going through the same process at the moment and was quoted about £4200 for the plot. I pay £40 per year and the remaining lease is 960 years.

The proper price ought to be about £850 to £1200 + V's fees.

Have you not served a Notice of Claim [1967 Act]?

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thanks to both of you.

 

---------- Post added 05-01-2017 at 15:40 ----------

 

It's on my work computer. I can send it to you when I return to work on the 3rd January. ☺

 

hi, this is just a kind reminder to send me the samples please. sorry but i am not allowed to PM yet as i have not reached the minimum posts :-(

 

---------- Post added 07-01-2017 at 10:54 ----------

 

The proper price ought to be about £850 to £1200 + V's fees.

Have you not served a Notice of Claim [1967 Act]?

 

should the the notice of claim be done through a solicitor? and if so what is the usual fees ?

Edited by ealsusa

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It's on my work computer. I can send it to you when I return to work on the 3rd January. ☺

 

hi there, this is just a gentle reminder to send me the sample docs (at eaauk at yahoo dot com) you have if you can find them please. thank you.

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should the the notice of claim be done through a solicitor?

Yes (and, I know, I would say that!)

Although it's not compulsory, it minimises the possibility of errors dooming it to invalidity.

and if so what is the usual fees ?

Cannot say- it's just part of the full exercise.

My firm charges £250-£350 + VAT + disbursements for this first part of the work.

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we had a similar problem a couple of years ago as we wanted to extend. The freeholder quoted £850 to purchase the freehold. Our lease had over 700 years left and was £5 per annum in ground rent. We replied offering £50 to purchase the freehold otherwise we would take it to the land value tribunal. We got a counter offer a week later for £175 (just below the cost of us taking it to the land value tribunal) so we accepted and now own the freehold.

 

If you want me to send you the letter I sent across to their solicitor and the examples of previous LVT decisions I used to argue the price I offered, then just pm me your email address and I will send it straight across.

 

Good luck with it all. :)

 

I have the same problem with E & M wanting £500 for the building of a small kitchen extension and £1200 to purchase freehold. Ground rent is £16 p/a. I would be great full to see your letter etc. but am unable to pm because of insufficient posts. I'll address it.

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Do not pay such fees. Why? Well, here's s.19(2) of LTA 1927 from http://www.legislation.gov.uk/ukpga/Geo5/17-18/36/section/19 (with my underlinings added):

 

In all leases whether made before or after the commencement of this Act containing a covenant condition or agreement against the making of improvements without a licence or consent, such covenant condition or agreement shall be deemed, notwithstanding any express provision to the contrary, to be subject to a proviso that such licence or consent is not to be unreasonably withheld; but this proviso does not preclude the right to require as a condition of such licence or consent the payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or any neighbouring premises belonging to the landlord, and of any legal or other expenses properly incurred in connection with such licence or consent nor, in the case of an improvement which does not add to the letting value of the holding, does it preclude the right to require as a condition of such licence or consent, where such a requirement would be reasonable, an undertaking on the part of the tenant to reinstate the premises in the condition in which they were before the improvement was executed.

 

So L cannot charge a lump sum for consent: only its legal/admin. fees for giving consent.

And failure to provide consent within a reasonable time (e.g. max one month) or on reasonable terms equates to unreasonable withholding.

Edited by Jeffrey Shaw

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read somewhere that there was and Act that

no action can be taken if 6 years have passed for ground rent and 12 years for anything else.

perhaps this might help original poster

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read somewhere that there was and Act that

no action can be taken if 6 years have passed for ground rent and 12 years for anything else.

perhaps this might help original poster

Yes, the Limitation Act 1980: http://www.legislation.gov.uk/ukpga/1980/58/contents See sections 5 and 8. The six-year period in the former applies to contract debts (inc. rent arrears) even if the rent is reserved by a 'Specialty' [meaning a Deed] because of s.8(2).

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Do not pay such fees. Why? Well, here's s.19(2) of LTA 1927 from http://www.legislation.gov.uk/ukpga/Geo5/17-18/36/section/19 (with my underlinings added):

 

In all leases whether made before or after the commencement of this Act containing a covenant condition or agreement against the making of improvements without a licence or consent, such covenant condition or agreement shall be deemed, notwithstanding any express provision to the contrary, to be subject to a proviso that such licence or consent is not to be unreasonably withheld; but this proviso does not preclude the right to require as a condition of such licence or consent the payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or any neighbouring premises belonging to the landlord, and of any legal or other expenses properly incurred in connection with such licence or consent nor, in the case of an improvement which does not add to the letting value of the holding, does it preclude the right to require as a condition of such licence or consent, where such a requirement would be reasonable, an undertaking on the part of the tenant to reinstate the premises in the condition in which they were before the improvement was executed.

 

So L cannot charge a lump sum for consent: only its legal/admin. fees for giving consent.

And failure to provide consent within a reasonable time (e.g. max one month) or on reasonable terms equates to unreasonable withholding.

 

I have been thinking along the lines of Legal Indemnity Insurance and not seeking consent at all, but it seems that one of the criteria to get the insurance is not to have had contact with the L regarding consent. That's difficult as the Agent no longer displays the fee on their site as they used to. (clever move!) Is it true that only a Solicitors can issue this type of insurance.

I also thought buying the Freehold would be of better value but I guess that the Agent will now make sure that any charge for consent is wrung out before selling the Freehold.

So other than trying to reduce the £495 required by the Agent to carry out services on behalf of the L, I'm a bit stuck.

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Is it true that only a Solicitors can issue this type of insurance.

No, but solicitors tend to be agents for the insurers and empowered to issue policies.

I also thought buying the Freehold would be of better value but I guess that the Agent will now make sure that any charge for consent is wrung out before selling the Freehold.

No. The value of the f/r depends mainly on the lease's unexpired term and the receivable ground rent (+ on the property's open-market value, if the unexpired term is < 80yrs). Hoped-for consent fees are irrelevant, esp. as the 1927 Act effectively makes them unlawful.

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I have been thinking along the lines of Legal Indemnity Insurance and not seeking consent at all, but it seems that one of the criteria to get the insurance is not to have had contact with the L regarding consent. That's difficult as the Agent no longer displays the fee on their site as they used to. (clever move!) Is it true that only a Solicitors can issue this type of insurance.

I also thought buying the Freehold would be of better value but I guess that the Agent will now make sure that any charge for consent is wrung out before selling the Freehold.

So other than trying to reduce the £495 required by the Agent to carry out services on behalf of the L, I'm a bit stuck.

 

I would bite the bullet and buy the freehold......

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