Lease Extension - Do I need a solicitor

williyam

Hi,


I'm already part way through a lease extension on my flat.
So far I have.
Contacted freeholder through managing agent
Paid freeholder's valuator (£450) to value flat for freeholder
Received a quote from freeholder to extend to 99 years at a premium of £8000.


I am happy to accept this offer.


I'm aware that I will need to pay for the freeholder's solicitors cost and any fee in regards to altering the lease and registering the change.


However most site suggest that I pay a solicitor to handle my side of the contract. I've been quoted £525 + VAT to do this.


Is it essential to have a solicitor as it seems I have done most of the hard work and this won't go to tribunal. What exactly are they doing for their £££s?


If it is a case of registering my ownership etc then can't I do this?


Many thanks for any help.


Will
Many thanks for any help.

chris_aaaaa

Have you at least done an online valuation to see how much it should cost to get a statutory extension (+90 years and no ground rent).

williyam

I did an online calculator to get an estimate of what the premium would be.

Somewhere in the region of 12,000 to 15,000. So yes I know that 8000 for 27 years isn't particularly good value for money but I am selling and I have a cash buyer who is happy with 99 years.

My two incentives are therefore to get this completed and at as least cost as possible.

So putting costs/value for money etc to one side my question is do I really need to pay an extra £600 for a solicitor to perform the formalities or can I do this myself?

Thanks.

loubel

Your solicitor will approve the new lease on your behalf, ensure everything is completed properly and register your new lease at the land registry. If you have a mortgage they will also do so for your lender (who will insist a solicitor is appointed). If you are selling your flat then your conveyancing solicitor can deal with this.

williyam

Thanks for that info. I also spoke to leasehold advisory service and they stated that the main thing is my solicitor will run over the new lease to ensure there aren't any issues.

I might just try someone else though as £600 to do this seems steep.

chris_aaaaa

My worry would be, do you need the sale to go thru to afford the 8k, if the sale fell thru would you be in trouble?


Could you knock 9K off the price and leave it with the purchaser to sort it out, once you give notice etc you can pass on the right to extend to the buyer, they might even be advised to go for the full statutory extension.

williyam

I believe it is common place for the solicitor acting on the sell to reserve the monies required for the lease extension from the buyer to pay for the extension once this happens.

I have reserved some money though to pay for the extension should payment for this be required before I receive money from the sale.

I've checked a couple of other solicitors and actually the quote of £550 plus vat from mine seems quite reasonable compared to others...although reasonable is subjective when they are just checking a document that you've already paid the freeholder's solicitor to draw up correctly.

Hey ho.

jee

Yes you need a solicitor for the deed/mortgage transfer etc. That quote is very reasonable.