Licence To Alter, Supplemental Lease and Deed of Variation Costs

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  • Lawcruncher
    replied
    This transaction only needs one document, a lease. A skeleton of the clauses needed:

    ·A demise of the additional land
    ·A statement that the terms of the lease are (mutatis mutandis) the same as the OP's lease except as expressly provided in the next clause
    ·Set out any changes to the terms of the OP's lease which are to apply to the land including dealing with future maintenance of the extension
    ·The landlord gives permission for the OP to carry out the works specified in a schedule
    ·The OP covenants to obtain all necessary permissions to carry out the works before starting them; once the works are started to carry on and complete them expeditiously; to carry out the works in a good and workmanlike manner causing the minimum of disturbance to the other leaseholders
    ·If required, a release by the other leaseholder of their rights in the land to be demised

    The above is not rocket science for a conveyancer, If I was still working in the law and had all my precedents to hand I could draft the document in an hour. If I was approving a properly and fairly drafted document it would not take an hour. Adding in the admin there is no more than three hours work here at a maximum. The firm's rate works out at more than £1760 per hour.

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  • nushandphil
    replied
    Thank you for all your responses, good to know this is on the high side and we should be able to save some money. Do you have any advice on indicative costs (appreciate this might be a 'how long is a piece of string' kind of question). I've already messaged a few other solicitors.

    Originally posted by AndrewDod View Post
    The lease variations are not going to be (or should not be) trivial. Every lease will need altering with consent of each lessee. Who is responsible for maintaining the extra building? How are the service charge percentages going to change? Insurance? Are you paying fellow lessees for the uplift in value based on the building on their land and their loss of amenity?
    .
    The building maintenance will fall into the freehold, along with the insurance. Since taking over being the director I've saved us £100's off our insurance premiums by using a better broker so not had any complaints with that. There is no service charge currently and no we will not be paying the fellow lessees for the land. Fortunately they have taken the approach that as they have no right for access it doesn't make any difference to them on a day to day basis.

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  • Lawcruncher
    replied
    absolute rip off

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  • Jon66
    replied
    Deed of variation costs to both parties was £1723 inc vat. So your quote is fair but on the expensive side. You could shop around, but in my experience you are better off using an experienced solicitor who isn't going to take short cuts and deals regularly with leasehold issues.

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  • AndrewDod
    replied
    You don't, by the way, NEED anyone to act for the Company. You do, and with that hat on you just nod.

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  • AndrewDod
    replied
    The lease variations are not going to be (or should not be) trivial. Every lease will need altering with consent of each lessee. Who is responsible for maintaining the extra building? How are the service charge percentages going to change? Insurance? Are you paying fellow lessees for the uplift in value based on the building on their land and their loss of amenity?

    But yes solicitors tend to calculate time in a manner unknown to normal mortals, multiply by three, and then charge an hourly rate totally out of proportion to that earned by most other professionals (doctors doing surgery, dentists...., podiatrists). It is a closed shop.

    Leave a comment:


  • Licence To Alter, Supplemental Lease and Deed of Variation Costs

    Hi There,

    I live in a share of freehold ground floor flat (1 of 4 flats, 2 ground floor, 2 first) within a converted Victorian house and am looking to do a 3.5m extension into the garden. The garden is shared between the 2 ground floor flats and split down the middle by a fence. Each ground floor flat has sole access to their portion of the garden, however it belongs to the freehold. The freehold is held in a ltd company of which I am the director. All the other freehold owners have consented to the works so there is no problem there.

    I was put in touch with a solicitor by our party wall surveyor who has said that due to me being the leaseholder and director of freehold company there is a conflict of interest and so she directly cannot act for both parties, however someone in firm could act for one and her the other. She has quoted the below:
    • Licence for Alterations, to include consent to works outside the demised premises and provisions referring to works to the party wall(s) – Solicitor 1 (for freehold owner) £1250 plus VAT; Solicitor 2 (for leasehold owners) £1050 plus VAT
    • Supplemental Lease and Deed of Variation – Solicitor 1 (for freehold owner) £950 plus VAT; Solicitor 2 (for leasehold owners) £1150 plus VAT and disbursements which will include Land Registry fees for dealing with registration at the Land Registry following completion. Note that Solicitors 2 fees for this aspect would be slightly higher as he will also be dealing with your mortgagee who will probably require a Deed of Substituted Security to include the extension in their mortgage, as well as the Land Registry formalities post-completion
    Before the extras included in the last sentence of bullet point 2, this is £5280, which seems very high. Are these costs reasonable and if not, what would this typically cost?

    Thank you in advance,
    Phil


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