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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9325
Experience:  I have been practising for 30 years.
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I am buying a flat with a lease of 82 years. I want to

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I am buying a flat with a lease of 82 years. I want to extend. The freeholder said he will extend for £8,800. I know I need to get the seller's agreement, but I have now been told I must also get a survey valuation and notice sent to the freeholder all of which must be done before completion. Do I need this in view of the freeholder being happy with the cost?
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

Lease extension valuations are done on a fixed formula. There are several calculators on the Internet and the formularies quite complex. Here is one calculator. http://www.myleasehold.co.uk/lease-extension-calculator

The amount the freeholder can charge is based upon a statutory formula. There is no legal reason why you cannot agree whatever price you like between you however. How much you are paying may be over the top or cheap. Or it may be the correct price.

The reason that you have been told to get a valuation is so that the can be no allegation at any stage in the future that you were not advised correctly by the solicitor that you may have been able to buy the freehold cheaper and that the freeholder can never make an allegation against his solicitor that he could have got more money for it. Hence, it is in both your interest.

I can’t see why you have to give notice of the lease extension to the freeholder because the freeholder has notice by virtue of the fact that you are having the lease extension.

Can I clarify anything for you? Please do not forget to rate the service positive. It’s an important part of the process by which experts get paid. We can still exchange emails.

Best wishes.

FES

Customer: replied 1 year ago.
Thank you for the information. The freeholder has asked for £8,800 for the extension.The calculator says it should be between £3000 and £4000. Having read the info, I am happy to get a valuation, but still don't know if it is necessary to have this done BEFORE I complete. With my ast experience of buying/selling all I have had to do was give permission for the extension AFTER selling. The estate agent tells me that a couple recently declined to extend, changed their mind a few months after purchase but there seemed not to be a problem with the 2 year rule before completing. AS the solicitor i am using does not deal with lead extensions, I will need to go elsewhere and wold rather go to someone in the locality of the flat.
Expert:  F E Smith replied 1 year ago.

I can see now why the solicitor is insisting that you have a valuation done. He is covering his back to prevent any allegation in the future that he has been negligent in failing to advise you in respect of the cost if you are paying double what the landlord is actually allowed to charge you.

It’s not a case of giving permission for the lease extension, he has to extend it. You have a statutory right.

If the solicitor doesn’t deal with lease extensions, find another one.

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