Leasehold Extension question

dominicnp

Hi


I have just begun the process of extending our 81 year lease on our flat in south east London. Obviously I want to get this done asap before it goes under 80 years to avoid the marriage value situation.


The freeholder is open to extending the lease but wants to use a leasehold surveyor to value the lease. The freeholder is insisting I use their nomination. I have spoken to this surveyor who seems to be a reasonable person (although I accept that as he is acting for the freeholder his valuation is probably not going to be the most independent). I also have to pay for this. He charges £630 which I have to pay.


He also says that although I am paying for the valuation I am not allowed to see it - he is obliged to send it only to the freeholder.


So my question is - is that true? Am I really not allowed to see the valuation at all? If so, is it a sensible idea to get my own valuation done (again at a probable cost of £600 - £700)? I think the rough cost of the extension (having gone through a couple of calcuators ) is approx. 8,000 to 10,000. So it might not be saving my much money unless the freeholder comes up with a mad figure well over £10,000.


I have instructed a solicitor as well who will be serving a Section 42 Notice on the freeholder to ensure we are following the formal process.


Thanks in advance for your help.

eddddy

It sounds like you may not understand the statutory lease extension process - ask your solicitor to explain.

Briefly, in order to serve an s42 notice, you must first have a valuation. To be credible, you'll need to pay a leasehold extension valuer to do this.

The freeholder may then instruct their own valuer - and you have to pay their valuer's fee.

If the two valuers don't agree - then the negotiation/arguing starts.

There's some helpful info here: http://www.lease-advice.org/publications/documents/document.asp?item=8

Swlondon

That's not correct and I wouldn't use their surveyor. We just undertook the same exercise in SE London too used our own local surveyor who had our interests at hand, the freeholder then used their own surveyor and both the valuations were off (ours was the lowest of the range there was pushed to the maximum in the range) therefore that was the position we all had to start negotiations and meet a middle ground. I would definitely not have used the free holds surveyor as their interest is to attempt the maximum possible cost to you as there are no guidelines on this!

anselld

edddy has stated the correct formal process under which you pay your own legal plus valuation fees PLUS the freeholders legal and valuation fees.

The only alternative is if you can reach an informal agreement with the freeholder, eg by offering a slightly enhanced premium, you may avoid the need for both sets of surveyors.