Lease extension – fixed fee service vs separate solicitor/valuer?

MarmotV

We have a flat in London worth about £500k with ~85 years left on the lease. We’re looking to extend. Our freeholder has been a bit difficult in the past (insurance / service charge), and there may also be a historic kitchen alteration issue which could complicate things.

We’ve been quoted by Homehold for a managed, fixed-fee service covering valuation, negotiation and legal work. Their total cost is £3,100 inc VAT for our side. Stage 1 (valuation + eligibility) is £1,030 if we don’t proceed.

The appeal is the fixed cost and that negotiation is included. The downside is obviously price and using a packaged service.

A few years ago we were quoted ~£800–£900 for valuations, but negotiation was hourly, so total cost was uncertain. My understanding is solicitors are often ~£1,000 + VAT.

Questions:

• Does £3,100 inc VAT for valuation + negotiation + solicitor seem reasonable for London?

• Or is this clearly expensive compared to instructing a valuer and solicitor separately?

• Has anyone used Homehold?

(We know we also have to pay the freeholder’s costs and the premium - this is just about our own fees.)

JM68

We're in London. Extended lease in 2021. Solicitor was fixed price (£1000). Valuation report was fixed price (about £900). Valuer then did negotiation for percentage fee of reduction he achieved on freeholder counter offer (ended up about £800). All then plus VAT if I recall correctly. Sols had to put in Tribunal claim in he end to get them to settle (which worked and was within fixed price, though not covering representing us at Tribunal, which fortuantely was not needed in the end). Add inflation since 2021 then £3100 inc VAT seems okay. Not used/heard of them so don't know if they are good. But always worth checking T&Cs for carve outs about stuff not covered or 'difficult' case clauses etc.

mlz1413

I've been quoted between £1300 and £2500 for just the solicitor costs on a full lease extension.

Valuation will be extra

So yours sound fair.  But you could get 2 comparison quotes to make sure.

MarmotV

Thanks. My only concern is that they request a £1000 deposit but won't start the case until mid-March. I appreciate that they dedicate time to the work, and so happy to wait. But it's unclear why 1/3 of total costs has to be paid straight up. 

mills112

we were looking to extend in london and used setfords.  they seem to be very competitive in pricing, so worth getting a quote from them.  we instructed our own surveyor, which didn't cost a lot.

yeah, £1,000 upfront cost isn't unsusual.  we had to pay that as well.

Tracet74

I'm with a firm of surveyors who work alongside Setfords and they have a good reputatation.