Lease extension sec42 no counter offer

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    Lease extension sec42 no counter offer

    Hi
    we issued our freeholder with sec42 notice on our BTL flat through our surveyors . We had fast response asking for 10% of the premium suggested (that we paid via bank transfer) and that their valuer would be in touch. The deadline for their counter offer has past( over two months) we have not herd from them or their valuer. We understand we can now ask for our offer to be instigated by a court.
    Is this a straight forward process or can the FH use anything to reopen negotiations?
    thanks in anticipation

    #2
    See section 10.2 in the free guide which you can download from LEASE website.:

    https://www.lease-advice.org/advice-...tting-started/

    Comment


      #3
      You can apply to a tribunal and ask them to agree your offer as the price, but the freeholder will also have the opportunity to argue that a different premium is appropriate. The fact that you have not received a counter offer may work in your favour, unless the freeholder has evidence that a counter offer was sent.

      The freeholder will also have the opportunity to appeal any decision that the tribunal makes.

      It is also likely that the freeholder will expect you to pay the costs of their solicitor/surveyor related to the tribunal hearing, in addition to you needing to pay the same costs for your own solicitor/surveyor.

      Comment


        #4
        Originally posted by Macromia View Post

        It is also likely that the freeholder will expect you to pay the costs of their solicitor/surveyor related to the tribunal hearing, in addition to you needing to pay the same costs for your own solicitor/surveyor.
        that is incorrect - the freeholder can seek costs on a very limited heads of costs - namely the valuation fee, the costs of the solicitor dealing with the counter notice and the costs of preparing the deed of surrender and regrant . The costs of negotiations are not recoverable from the lessee but are bourn by the freeholder. The costs of the freeholder will be in the range of £1750 to £2000 unless the property is in Prime Central London where more may be recoverable

        Comment


          #5
          Originally posted by sgclacy View Post
          The costs of negotiations are not recoverable from the lessee but are bourn by the freeholder.
          Yeah, you're correct - any costs at a tribunal if the premium hasn't been agreed are supposed to be met by the party incurring them (the freeholder pays the costs of their solicitor, the leaseholder pays the costs of theirs).

          Comment


            #6
            Regarding the valuation fees, if no visit was made would a desktop valuation be less costly? Would anyone know the average price for a valuation done in the Valuers office.
            Thanks.

            Comment


              #7
              Originally posted by desamax View Post
              Regarding the valuation fees, if no visit was made would a desktop valuation be less costly?
              Possibly, but I wouldn't bet on it.

              The freeholder's surveyors and solicitors fees are likely to be higher than your own fees, not because there would have been significantly more work involved but because the freeholder isn't obliged to shop around for the best prices and the surveyors/solicitors know that they can get away with charging whatever is considered to be within a typical range.

              If you are going to a tribunal anyway, you have nothing to loss from asking them to determine whether the fees that you are charged are reasonable, but that doesn't mean you won't end up paying over the odds. If typical costs are in the region of £1750 - £2000, fees of up to 50% higher might still be considered to be 'reasonable' if you are unlucky - it would depend whether the freeholder can persuade the tribunal.

              Comment


                #8
                “The landlord can then ask you for information within 21 days of receiving your notice which you must provide within 21 days. Note that the landlord is entitled at any time after receipt of the Tenant’s Notice to require the payment of a deposit. This may be 10 per cent of the premium proposed in the Tenant’s Notice or £250, whichever is the greater.”

                If as stated above the Landlord asks for information after the 21 day window, would it be normal to ignore their request for information The landlord can then ask you for information within 21 days of receiving your notice which you must provide within 21 days. Note that the landlord is entitled at any time after receipt of the Tenant’s Notice to require the payment of a deposit. This may be 10 per cent of the premium proposed in the Tenant’s Notice or £250, whichever is the greater.and just pay the deposit required.
                This is for a separate property.
                Thanks.

                Comment


                  #9
                  desamax,

                  In my post No. 2 , I pointed to Section 10.2 in LEASE's free guide which gives the advice copied below :

                  " If the landlord does not serve a counter-notice by the date stated in the tenant’s notice, you can apply to the court for a vesting order. This application is not for a court order requiring the landlord to serve the counter-notice, but effectively takes the matter out of the landlord’s hands by asking the court to grant the new lease. The court will grant the vesting order on the terms proposed in the tenant’s notice.

                  If you decide to apply to the court for a vesting order, you must do this within six months of the date when you should have received the counter-notice".

                  - If you don't understand what this part means " The court will grant a " vesting order on the terms proposed in the tenants notice" ,

                  then you should contact the legal advisor at LEASE to explain- which court and how to get the vesting order ? .

                  Comment

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