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Hi we recently served a S42 notice on our freeholder to formally extend our lease. Our lease has 79 years remaining and because of the low figure 4-6k recommend cost for this we decided to try to do this alone
Today we received a letter from the FH solicitor in acknowledgement of our S42 requesting the mandatory 10% up front payment. We based our valuation on resent sales prices of identical unit on our development.We have been asked to send details of our valuer, and also supply evidence that our S42 notice “was served upon the management company” we sent copies via Royal Mail to all companies named on our lease. We only sent the FH he original via special delivery.Because we are trying to keep cost to a minimum we want to see what exactly the FH will propose as we know we will have to pay their cost. Could anyone tell us if we are liable to have a professional valuation carried out and should we have sent all copies of the S42 via secure mail.
Thanks in anticipation.
You are highly likely to be required to pay for a professional valuation. You should also serve notices correctly so that you are inside the enfranchisement rules.
Although I cannot comment, I would suggest Neil is right and an initial call to Katie Cohen is probably a good starting point.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
Thanks again, We completely understand we are to pay the FH cost, We have spoke to local agents and have sight of recent identical sales in our block, this we used as our valuation. We also know other leaseholders have recently extended their leases as they are all around the 80 yr mark. So we have a good idea what we should be paying, would it make a difference if we don't use a professional valuer, unless we have to. We have to hand other premiums paid by other leaseholders and will use that as a guide. Or are we missing something?
There is a formulae for calculating the cost of a lease extension, there are various calculators on the internet which will give an indication of likely cost, for example -
If you have a mortgage on your property the lender will also need to agree to the lease extension, it's unlikely they would refuse but additional paperwork to consider.
I would not attempt to complete a lease extension without using a solicitor.