Lease Extension advice

[DESAMAX]

 

Hi we have issued a Sec42 notice (taken from a template) on our freeholder, who’s address we obtained from the land registry,

Who were solely listed as the freeholder..We have received a response dated 28 days later requested further information . The information requested is for evidence that our S42 was served on the Man co, we did send them a copy by first class Mail on the same day as the notice. 

We note, mainly the bold part ....

 

“ Once the notice has been submitted, a strict timetable comes into effect:

(i) The date of submission is considered to be the “Valuation Date”. So, however long the process takes, only the value of the lease extension on the valuation date will be considered as relevant to this application. It also freezes the length of the lease for assessing the premium. This fixed date is very important for leaseholders who want to avoid being on the wrong side of the 80 Year Rule. As long as you have submitted your application before the 80 Year deadline, you are safe.

*(ii) The landlord may request further information, which they must do within 21 days of receipt of the Tenant’s Notice. The leaseholder must respond to this request within 21 days.*

(iii) The landlord now has 2 months to respond with his own offer. This is known as the “Landlord’s Counter Notice” or “Section 45 Notice”. The landlord’s response might be:

(a) To deny that you qualify. This is unlikely to happen if proper checks are carried out prior to the application.

(b) If they recognise that you qualify, they can demand a deposit of 10% of your offer or £250, whichever is the greater. Remember that the leaseholder is liable for their own and also the landlord’s reasonable valuation and conveyancing costs (but not for the hearing or any negotiations). The landlord may then submit their counter offer. If their offer is unacceptable, your valuation surveyor can respond to it and negotiate on your behalf.”

 

 

As the freeholder request for information was past the 21 day timeline,  are we within our rights to ignore this request, and just send the deposit?

we are currently looking to appoint a lease extension expert to take on our case, as it seems more complex than we first thought. 

But we have to respond soon and would like some advice. 

Thanks in anticipation 

 

 

[king12345]

In principle yes, they're out of time, however,  like all sort of conveyance I prefer to employ a professional. 

For the sake of a few hundred pounds they do all the work and know all the tricks and loopholes.

They're also insured in case they mess it up.

My advice: employ a lease specialist solicitor and stay away from the cheap internet firms.

[ericsbrother]

they are timed out so if it goes to a valuation tribunal it will count against them but other than that it means very little.

Is there anything in their request that is frivolous or awkward for the sake of it? If not just accept they are trying to get the most they possibly can and you are trying to pay the least that you can. If they want a ridiculous amount then you would be advised to get someone to do the negotiating for you and that person shoudl be legally qualified and professionally insured so you have comeback.

[DESAMAX]

Thanks for the response 

 

Their request is only to asks for the evidence that we served the notice upon the Management co who was named on our lease along with the previous Freeholder.( we sent them a copy via 1st class mail) We carried out an online land registry search and the recent freeholders name is souly listed, that's who we served the notice to. We don't want them to throw a spanner in the works over this. We note the solicitors are NOT shall we say leaseholder friendly by their reviews, maybe we should have got proof of posting.

By the solicitor also demanding 10% we hope this means they recognize that we qualify. We are armed with recent outcomes of other leaseholders outcomes on our development that show the cost to be between 6-8k to extend the lease. On receipt of their counter offer we will instruct a expert solicitor. If the offer is too high we will have to instruct a lease extension specialist.  If we get it for under 9k we would have made a substantial saving on cost    

Edited June 14, 2019 by DESAMAX

[king12345]

If you read it properly,  the 10% is only for them to look at the paperwork and doesn't give any assurance. 

They are leeches, so be extremely careful with what you sign, that's why I suggested a specialist

[ericsbrother]

letters deemed to be delivered 2 days after posting so sols are just time wasting to keep the taximeter ticking over.

all you need to do si send them a copy and say it was sent by 1st class post to such and such address ( reg office presumably)

[DESAMAX]

Slight up date, i have received a s45 counter notice (admitting claim)

 

This has not been signed by a natural person, its signed   ** **** real estates ltd, in pen.

Would this be classes as a valid notice?

Thanks again    

[stu007]

Yes but what else did the S45 state?

 

http://www.legislation.gov.uk/ukpga/1993/28/section/45

[DESAMAX]

The s45 admits my claim to an  statutory extend lease, they don’t agreed with the premium offered. 

They have counter our offer with one 110% higher than ours. 

Edited July 24, 2019 by DESAMAX

[ericsbrother]

is the freeholder  a limited company or individual? if the former then signed on behalf of is right.

as for the counter-offer you can make another offer

have you taken advice from the govts lease advice organisation? I woudl do that before shelling out on a solicitor and whislt you are asking them about a fair price enquire whether the correct entity has siged off the response to the  S45. If the freehold is held by an individual then the response isnt valid and the freeholder is now in a trickier position if you go to  the tribunal

[DESAMAX]

Thanks,

I have been in contact with lease advisory service who I have another phone appointment with late next week. The freeholder company’s solicitor sent the s45 at the 11th hour it arrived via special delivery one the deadline day. 

I hope in their haste they might have made an error,

i attach the referred  part of the notice below. 

Before I respond to ask for evidence on how their valuer came to his valuation, I would also have liked  to ask if the signature was signed by an authorised natural person, and their position in the company, 

Once this has been clarified I will consider my counter offer. 

I hope I make sense?

thanks. 

 

[ericsbrother]

well, it is signed off by the solicitors and I dont know if that is good enough, ask the Advisory Service. The actual owner can insist you write to them via their lawyers as specified.

The Sols company has 2 directors, JBJ and MA Leitch with JBJ owning all of the shares