potential future works and licences - solicitor says it's a blank cheque...

ballenista

Hi all,

We are / were close to completion on a flat. It is one of two in a converted house and has access to an unconverted loft, which is included in the lease.

The flat was marketed as 'potential to convert' and also needed the lease extended (paid for by seller). We have signalled our desire to convert loft, and freeholder has come back to say it's £5k to alter lease from 'no alterations to be made' to 'alterations to be made with landlord's consent) which they can do whilst they alter it to extend the lease term. They have said this would not include the dormer air space, and any future works would need to be approved and further licences granted. On other small matters they have also been very unwilling to be flexible (e.g. £500 for a licence for a cat flap to be installed)

My solicitor says he would be very wary of proceeding with the purchase at all, since the freeholder essentially has all the bargaining power and it seems likely they will charge significantly more when we get plans to them. I am reluctant to let the sale go but not being able to make ANY alterations is so unappealing. We are expecting our second child and out of a home in around six weeks so need to decide fast, and will have to rent if we pull out.

What would you do?!

AdrianC

Five hundred quid for a catflap?
Five grand to say "Yep, you can pay for permission in the future"?

Don't walk away. RUN. This freeholder is extracting the Michael big time.

SmashedAvacado

You have a right to make alterations regardless of what the lease says if they are an improvement and do not damage the reversion (ask your solicitors to look at the 1927 act). Is the £5k for the lease extension as opposed to the change in the alterations clause (which isnt really needed to allow you do to what you want to do). You have a right to apply to court to make these improvements if they benefit the property etc which might be enough "stick" to make the landlord agree to something more reasonable.

ballenista

Thanks SA - it’s not to extend the lease (seller is paying £37,000 for that) so purely for amending the lease to add ‘without permission from the freeholder’ to the clause which begins ‘no alterations to be made to the flat including exterior’. I would be happy to threaten court but not delighted to actually have to go through with it! Just worried maybe proceeding with purchase is foolhardy...

SmashedAvacado

Stating you’re entitled to make alterations as a matter of law if they are improvements may be enough to bring them to a sensible approach. You shouldn’t be paying any kind of premium for having to do this. They’d likely be penalised for costs in such circumstances. In any event your solicitor hasn’t advised you well if they have failed to mention the rights that exist in law that override whatever the lease says.