Statutory Lease extension

da_rule

Also, if you are going down the informal route, why is your solicitor looking to serve a notice at all? All that then does is start the formal proceedings, there’s no need to serve notices for an informal renewal.

eddddy

da_rule wrote: »

Also, if you are going down the informal route, why is your solicitor looking to serve a notice at all? All that then does is start the formal proceedings, there’s no need to serve notices for an informal renewal.

I think the point is that the freeholder's solicitor has stopped responding.

That's a 'trick' used by some freeholders:

Pretend that you are happy to do an informal lease extension - and string the leaseholder along for as many months as possible. Then 'change your mind' about the informal lease extension.

In this case, the lease will dip below 80 years soon - so the freeholder may be 'messing about' until the 80 year mark is passed.

anna2367

We are serving the notice as this is what the landlord has asked for. My solicitor did say this isn't normal, but that's just what they want.

Can I get my solicitor to serve the notice without having another valuation done? I'm happy with the landlords price of £7,500.

da_rule

In your notice you have to suggest a premium so you could suggest the pre-agreed £7,500.

Have you read up on the effect of serving the notice (paying a deposit, becoming liable for costs etc).

anna2367

Yes, I am aware I will be liable to go through with it all. I am prepared for this as I have the funds in place and I'm ready to go. I can't believe a landlord can agree to extend a lease and not really want you to go through with it. How can landlords get away with it?

anna2367

I think I will send my solicitor an email asking her to serve the notice. What do you think? Should I do this?

eddddy

anna2367 wrote: »

I think I will send my solicitor an email asking her to serve the notice. What do you think? Should I do this?

You're doing things in a very unusual way.

How much do you trust your landlord? This might all be fine if your landlord is decent and honest, but the landlord might be planning to stitch you up.

For example, what if you serve the notice with a suggested price of £7,500 and the landlord instructs another valuer who responds with a value of £12,000?

It sounds like you haven't instructed your own valuer. So how would you justify that £7,500 is a reasonable amount and how would you challenge the £12,000?

anna2367

What should I do then? I don't understand why I need to pay for another valuation when I've paid for one already. Do you mean the valuation I paid for is only for the benefit of the landlord and I need to get my own? What if my own one comes back with a higher valuation?

Should I hold off serving the notice? I am not an expert and I'm going by what my solicitor is telling me. I just know that they are stalling for a reason and it's very worrying to know I can't do anything about it.

da_rule

Providing the valuation was on the basis of the statutory process being used then there isn’t a need for you to get another one.

However, the landlord could still get another one (which you’ll be liable to pay for). If, for what ever reason, this valuation turns out to be different you could end up in prolonged negotiations over the premium.