Stage 1. Valuation
Richard John Clarke will:
• Inspect the property
• Carry out research into comparable evidence
• Discuss values with local estate agents
• Review relevant lease clauses
• Provide a report setting out the range of values, giving the lowest, highest and a possible settlement figure.
Our fee for this service would be dependant upon the location and value of the apartment. However, we always do our best to be competitive.
Stage 2. Service of Section 42 Notice on the Freeholder
After having the valuation, if you decide to proceed, the solicitor should serve the relevant notice on the freeholder at the lowest figure.
The freeholder then has 2 months to respond with a "Counter Notice", setting out their proposed premium.
If they do not respond, then you will be able to purchase the lease extension at this lowest figure. However, it is rare for a freeholder to miss this important deadline.
Following the receipt of the Counter Notice, you may decide to accept the proposed premium (this would be fairly unusual as the Counter Notice is usually far too high). In that case, your solicitor would deal with the alteration to the lease to provide the additional years and complete this transfer.
Richard Murphy MRICS, RICS Register Valuer
Stage 3. Negotiation
However, if the Counter Notice figure is not acceptable, then Richard John Clarke can negotiate the figure until a more acceptable price is achieved.
Stage 4. Leasehold Valuation Tribunal
If after 2 months, but no later than 6 months, there is still no resolution, it will be necessary for the solicitor refer the dispute to the First Tier Tribunal (FTT).
Generally, it is rare for disputes to be heard by the First Tier Tribunal, as the costs involved encourage each party to try and settle matters prior to a hearing. Each party to such a hearing pay their own costs, regardless of who wins. That being said, Richard John Clarke have an excellent track record of success in our FTT hearings.
In summary, the process generally takes between 6 - 9 months; however, some lease extensions are settled more quickly. Payment of the premium is not required until completion, although a 10% deposit is often required by the freeholder.
Stage 5. Completing the Transfer
Once the premium has been settled, the solicitor will process the lease extension. The solicitor will ensure that your lease has an additional 90 years and a zero ground rent. This should all be documented at the Land Registry and your solicitor will account for all payments.
We hope this helps to explain the process and the costs, but for a any further advice, please do not hesitate to call us on 020 7499 8043 and our staff will be happy to assist.