Lease extension technicality - do I have any grounds to ask the sellers to pay additional legal fees

fc320

Hello all,

Development in place I am in process of buying..

The seller is the freeholder, selling a maisonette within the terraced house. On viewing the property / putting in my offer it was made clear to me that the current lease was 95 years and they were extending the lease by another 90. I asked them to clarify this in writing and made clear to them my solicitor would not be doing any work on my side - this should be the seller's responsibility. 

Of course it's now become clear that as the seller is the freeholder, they need to sort the lease on completion (as they cannot serve to extend the lease on themselves). My solicitor has kindly offered to do some work on their side post completion (apparently this can take up to 18 months with land registry delays!) - Which means an extra fee for me of 495 + VAT. 

Given I asked about this several times to the agents, do I have any grounds to ask the sellers to cover these legal costs? / Can I ask them to do anything here? 

Thank you 

princeofpounds

The work for a lease extension is not a one-sided process. It requires legal work from two sides - it is a contract; a deed in fact, between two counterparties. 

As you are basically buying a leasehold title which is currently owned by the freehold title owner, this is all a commercial negotiation. I'm not sure what other answer you are looking for - there is no rulebook. 

If you don't like the idea that you will have to stump up this money, then you can reduce your offer to compensate. You can make it clear that your offer was made on the basis of assurances from the seller's representatives that the lease extension would be handled before completion - now that is no longer the case. The seller can either accept, refuse or negotiate further.

eddddy

Until exchange of contracts, you can try to negotiate any new terms you like - including that they pay your additional legal fees.


But looking at this pragmatically....

What will you do if the seller refuses to pay the £495+vat - will you buy anyway? Or will you walk away?

If the seller thinks you'll buy anyway - they have no reason to pay the £495+vat.


But maybe it's still worth asking. People sometimes 'give in' in these types of circumstances in order to keep on friendly terms with a buyer and/or because they think it's the fair thing to do.