LEASE EXTENSION PROCEDURE

11:32 14 April in News & Case Studies
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Instruction
1. The valuation work starts the process. Please complete and return the
attached instruction form. We will send you separate valuation terms and
conditions for signature and return. All can be done by email with fillable
PDF forms. Valuation fees payment required to valuation account.
Valuation Work
2. We will call or contact you to arrange the inspection, or we will undertake a
desktop report depending on your requirements and the length of your lease.
You will be sent the report outlining the parameters of the premium to be
paid and the recommended initial notice figure.
Legal Work
3. We will send you separate terms and conditions for the legal work if you are
instructing us for the legal side (you may have you own solicitor). Please
sign and return the terms along with the requested ID. Legal fees payment
required to legal account.
Serving Notice
4. We will serve notice (Section 42) on the freeholder and any intermediate
interests. You are required to pay a 10% deposit of the Initial Notice figure to
the freeholder. The deposit will be deducted from the total premium and
costs on completion. 10% deposit payment required to our client account.
Receiving the Counter Notice
5. The Freeholder has 2 months to respond with a Counter Notice. Most will
take the full 2 months. The Freeholder’s Surveyor will contact you to arrange
an inspection. The Counter Notice will have the Freeholder’s figure.
Negotiating the Premium
6. Our Surveyor and the Freeholder’s surveyor come together to negotiate and
agree the premium. We will send you a separate instruction form for the
negotiations.
Completion
7. If the premium and the lease terms are agreed, subject to your approval,
then the matter is passed to the Solicitors and completed. You will be sent
the lease to sign and a completion statement and advised of any outstanding
costs. Premium and freeholder’s fees payment – less the deposit required to
our client account.
Tribunal
8. If the premium or the terms of the lease cannot be agreed, then an
application to the tribunal is made on your behalf. This must happen within 6
months of the Counter Notice. Negotiations can continue. If a hearing is
reached then the tribunal will determine the premium and the matter will then
complete or an appeal can be lodged.
Additional Points
• You also must pay the freeholders costs – estimated at £2,500
including VAT. Once notice is served you become liable.
• Time period 6-9 months to completion on average.
• The Land Registry have up to a 6 month delay.

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