Lease Renewal

[Rob Cranston]

Hey Guys,

Been a while since I've been round here so do excuse me if this question has been asked in the past.

Quick one for any lease experts. I've got a leasehold property nearing 83 years. I'm being quoted £965+VAT for a valuation to advise the cost of renewing the lease, this doesn't include the legal costs which are being estimated £775+VAT. Can anyone tell me, is this normal? Seem expensive for a valuation to me but I have never done a lease renewal before so wouldn't know.

Also, with leasehold reform etc, is anyone holding off to see if costs come down or if the GOV brings anything in on the renewal of existing leases? I don't mind holding off a little bit longer but am conscious that the cost will be increasing each year the lease decreases until it gets to 80 and gets ridiculous.

Look forward to hearing peoples thoughts.

Rob

[Darren McNeill]

Hi Rob,

When I am looking into getting a guide on pricing up I will email up to 10 different companies offering the service and then see what replies come back, you can then gauge what the average cost should be.

Also spend some time on google and find reviews of the company you are initially going to choose.  This way you can establish how effective they actually are.

Darren

 

                   www.fmp.group   

       Whatsapp Direct By Clicking Here                     

                       01706 507202

             

[Kerry Chan]

Hi Rob

While pricing could vary greatly, the fee quotes that you got (both surveyor and legal costs) seem quite reasonable, assuming that the landlord of the leasehold accepts your s. 42 notice straightaway.  If not, the costs would likely be higher.

In relation to whether to wait for the leasehold reform, I am not aware of any further draft bill around this going through Parliament yet, so there is no certainty - it is not clear when the leasehold reform aroud enfranchisement would come in (/ what the reformed calculation would look like), or if such reform would happen at all.  Thus, it's a personal decision based upon risk appetite and the potential costs (particularly given the 80-year mark) - it may well be a numbers game!

Hope the above is helpful.

For the avoidance of doubt, the above (a) does not constitute legal advice (and no lawyer-client relationship is formed in any way) and (b) is set out for your reference only.

Kerry