Obtaining lease extension from uncooperative freeholder - huge legal fees

marcosscriven

Hi there

I have lived in my propetry (purpose built maisonette) for nearly two years. I will hit the two year mark in June, at which point I will qualify for a lease extension. I have 85 years left on my lease, which means I've plenty of time before I hit the golden 80 years mark (under which it gets a lot more costly). I will be applying for the maximum 90 years, to take it to 175 years, which would be a much more secure amount of time.

Anyway, my freeholder is a really rather unpleasant chap. I've been trying to contact him for months now, and he has simply not been answering. I therefore sought advice from https://www.lease-advice.org, and a solicitor. Apparently I can serve a statutory notice, which the freeholder must reply to within a month. If he does not reply, then I can make an application to the LVT. Trouble is, this all gets quite legally complex, and if you make a mistake (say mess up the original notice), then you end up having to wait 12 months before you start again, and still incur costs from the freeholder's solicitor.

The big problem though is the huge costs involved - they quoted £1500 + VAT for a simple case, rising to over £6000 for a case that goes to the leasehold valuation tribunal. That doesn't include the actualy cost of the lease extension, or the cost of the freeholder's legal fees. Basically, we could be talking around £15,000 !! All that, for what amounts to a lease extension which should really only cost £3k.

Has anyone been through this? Do you have any advice? Can you think of a more cost efficient way of sorting this out?

Thanks

Marcos

Richard_Webster

There isn't really any way round this. If the freeholder is being difficult then you have to use the statutory powers and go through all the cost and procedure.

The only other thing you could do is sell the flat and buy a similar one with a less unpleasant freeholder or a shared freehold, etc.

At 85 years it shouldn't be too difficult to sell.

starving_artist

It's my understanding that if the case goes to the LVT you are not liable for the other party's legal fees beyond the initial valuation and basic costs.

sunnysea83

there is no application fee to the LVT for this type of application however if you make the application then the other side (respondents) could make a costs application to the LVT for the costs incurred prior to the LVT proceedings and not the costs whilst the application is with the LVT.

Richard_Webster

I'm not sure that it would end up in the LVT.
A freeholder that does not want to extend a lease can just ignore any informal request. It may be the case that with a formal Claim, the freeholder may suddenly be more responsive. If the freeholder is not 'missing', then for a small premium like this, it wouldn't make any sense for them to go to the LVT.

If the freeholder is a canny property investor, who wants to make as much as he can, he will play the system to some extent to frighten OP into settling for terms which are to his advantage, but will know how far to push, and may do a deal without going to the LVT because he won't want the costs.

If the freeholder is not rational then you may have to go all through the process.