Freeholder charges for extension

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    Freeholder charges for extension

    I have asked my freeholder (via their management company) for permission to build a one story extension to my flat - area of the new extension will be approximately 14 square metres.
    I received a reply stating the freeholder was prepared to grant consent based on the following conditions:

    1. You must gain full planning consent and building regulation approval. All the costs in respect of same are to be your responsibility.

    2. Consent will be provided upon the existing lease being surrendered and a granting of a new one on exactly the same terms with a revised lease plan. The costs of preparation of a new lease plan will be your responsibility.

    3. All legal costs involved are to be your responsibility. I assess them to be £750 + VAT.

    4. My fees in this matter to be your responsibility which are £450 + VAT.

    5. A premium of £2,500 subject to contract is required.

    I estimate this to be roughly around £4,500 - does this seem reasonable to you?


    Dan Perkins

    It depends where you live.

    In London, I think it would be a great deal. In South Wales, dreadful.

    You need to consider the extra value of your flat versus the cost of building work plus the £4500. If you are still handsomely in profit, happy days.


      The only bit you have to worry about is the £2500 premium as you would always have to pay the rest.

      So £2500 extra, I think I'd be happy with that. It's a lot better than a no.(Assuming you are pretty commited to the idea of an extension.)


        I expect that somewhere in your lease there is a clause entitling the FH to a proportion of the profit of any uplift in value of alterations you make to the demised property. That's where the £2.5k comes from. The clause may state 50% of the value. Read your lease.

        Depending where you are would effect the amount.

        Simply put. If the extension costs £10k for everything (inc paperwork). If as a reuslt of the works property is worth £20k more then you've made £10k profit. If there was a clause I mentioned above in your lease then the FH would be entitled to half of the £10k profit, so £5k.
        There is always scope for misinterpretation.

        If my posts can be interpreted in two ways, one that makes you feel angry and one that doesn't, I meant the latter.

        Everyday is an opportunity to learn something new.


          What does your lease say about alterations?

          Is the land you want to build on included in the lease?


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