Letter From Camden on lease extensions

Camden Leaseholders’ Forum homepage Discussion Board Lease + Ownership Letter From Camden on lease extensions

Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • #4899
    joshnic
    Participant

    Thought I would share this response to my enquiry to Camden:

    ………..
    Thank you for your enquiry regarding extending the lease.

    We do not issue voluntary lease extensions nor give an indication as to price. You will have a statutory right to acquire a lease extension once you have held the lease for two years. You would need to appoint a solicitor to submit a formal notice under section 42 of the Leasehold Reform Housing and Urban Development Act 1993. I can advise that a new lease would be for the remaining term of the existing lease plus 90 years and only upon receipt of this notice would we instruct our valuer to calculate how much the lease renewal would cost, and respond with our own counter notice.

    Further information on the lease renewal process can be obtained from an independent body called the Leasehold Advisory Service (LEASE)
    http://www.lease-advice.org

    The LEASE website contains lists of recommended professionals. We recommend that you appoint a solicitor and surveyor to act on your behalf as you will be liable for the landlords costs from the moment you serve a valid notice on the freeholder.

    The initial notice should be served on the following address:

    Paul Hewitt
    Leasehold Principal
    Leaseholder Services
    Housing and Adult Social Care
    Town Hall
    Judd Street
    London WC1H 9JE

    Fees associated with a Lease Extension:

    Claim investigation fee: £135
    Valuation: £450
    Legal fee: Variable

    Kind regards

    #5727
    frenchcountryside
    Participant

    I’m coming to this conversation late but my understanding is that the law is about to change and leaseholders will no longer be charged high fees for extending their leases.

    #5729
    RamsayShort
    Participant

    Are they saying that to extend a lease we have to hire a solicitor and pay for a valuation too, and they they will do their own valuation and see if they agree with our valuation – but they still have to legally extend the lease if asked?

    #5731
    PollyStringer
    Participant

    I was quoted a total of £5000 plus VAT for solicitors fees for myself and Camden. Almost as much as the lease. This sounds very high to me. I will wait to hear how new legislation affects me.

    #5734
    Stuart
    Participant

    That is correct @Frenchcountryside. If people are able to wait then they may be able to take advantage of new lease extension laws that will be coming into effect. i.e. fairer fees and potentially 990 year lease extension as standard.

    #5730
    jharris20681
    Participant

    I understand, the position today is, the council have to legally extend your lease but you legally have to follow the process below (which I have recently done myself)

    1. Appoint a solicitor to represent me and service the Section 42 notice on Camden Council.
    2. Pay £135 and £450 to Camden Council (as detailed above) so they can get there own valuation of the premium required to extend the lease
    3. Appoint a RICS surveyor to value the “premium of extending the lease” on my behalf
    4. If the surveyor for Camden Council and myself have different figures then there maybe some negotiation over the premium of extending the lease.
    5. Pay the premium lease extension.

    To be honest the online calculators such as the one below give a very accurate figure for what it is likely to cost to extend your lease. http://lease-extensions.org.uk/calculator.html

    There is a lot of talk in the media that they will reform the law so that lease extension premiums will be more reasonable however I know there are companies still actively looking to purchase freeholds for the leasehold extension premiums so Im not sure if this is likely to happen very soon. There is also the added consideration that every year you do not extend the lease the premium goes up!

    Note when lease length drops below 80 years there is a marriage fee applied to the premium which can be very significant.

    The costs are

    Council legal and valuation fee – £450 and £135
    Your own legal and valuation fee – approx. £450 and £750
    Lease extension premium – see calculator above

Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.