License for Alterations - Are we being had?

pineapple80

My partner and I own a leasehold flat and we've decided that we'd like to make some alterations which include updating a window and extending the stairs to create a new level inside the flat. We've had quotes for both and they seem to be quite 'straightforward' alterations as we're not taking anything away and all works will have timber frames.

We've now approached the freeholder (via the management company) to get permission and their solicitor has got in touch to say to carry out these works we need a formal License for Alterations. What's surprised me is that they've quoted us £1000 +VAT and 'any disbursements'. Is this kind of cost normal?

She's also said we should forward her details on to our solicitor but if that's what we're going to have to pay her we don't really want to be paying a solicitor for us too.

Thanks in advance for your advice.

dj1471

What does the lease say?

pineapple80

The lease says we need permission from the freeholder for structural alterations

davidmcn

Are your alterations structural?

I know you probably don't relish paying more money to lawyers, but you might want to get someone to check that the licence is necessary, and that what you are getting actually covers everything you need it to (rather than find you have to pay another £1,000 later on because something was missed).

pineapple80

Yes you're right, that's a good point.

The alterations are structural - we've had an engineer draw it up.

Do you think the freeholder's solicitor's fees for this kind of job a little high or is that pretty standard?

eddddy

The law simply says that an administrative charge (e.g. for granting a licence) must be 'reasonable'. And if you feel the £1000 is not reasonable, you can go to a tribunal.

See: http://www.lease-advice.org/information/faqs/print_faq.asp?section=10

For comparison, in 2011 a tribunal ruled that £105 was an unreasonable admin charge for granting a consent to let. They ruled that £40 was reasonable. See:http://www.lease-advice.org/decisions/8587pdf/7001-8000/7860.pdf

Dealing with a licence for alterations is obviously more complex than granting a consent to let, but personally, I'm not sure it's 25 times as complex.

"Plus disbursements" means you will probably have to pay for their structural engineer, solicitors, etc on top of that.

Perhaps you should query what those disbursements will be, before deciding how to move forward.

pineapple80

Thanks for the info.

We haven't actually been quoted an admin fee. The quote we've received is the solicitor's fee for dealing with the license and I thought it seemed a little steep. Maybe we should be pleased there isn't an admin fee? I will certainly ask them to clarify what the disbursements will be.