Negotiating a lease extension is important, because if you don’t get the best deal, you will suffer. You need a solicitor for this job, because they have the knowledge necessary, but did you know that there are solicitor fees for lease extension services?
Basic Premium Fees
The first set of solicitor fees for lease extension services are the basic premium fees. If a premium has already been agreed between you and the landlord, then there is a basic fee that you will have to pay in order to use the solicitors services. This will vary a little bit between solicitors, but the basic flat rate is often charged with VAT, but that’s the only payment you would have to make.
Solicitor fees for lease extension services can get complicated if there is not a premium already agreed. In this case, the costs are broken down into a handful of different services, which we will cover here.
There will be fees for the preparation and serving of a section 42 notice. Section 42 is formal notice that you, as the tenant, issue to the landlord to start a formal statutory route when it comes to least negotiations. This usually only happens when you can’t agree on a premium, or the landlord demands that you serve notice.
There can also be costs associated with a valuation of the lease extension. This price will vary depending on certain cases recently set out at the Court of Appeal. A valuation is often carried out remotely, and the calculation is done using variables within your specific lease, as well as market evidence from buildings in your area.
Finally, there can be costs associated with negotiating a new premium for you. A solicitor is authorised, with your permission, to negotiate a new premium with the landlord. Depending on the duration of the negotiations, i.e. how long they take, you could find that you are charged a relatively small amount or a high one.
The best thing that you can do to find out what kind of costs you might be looking at is to contact a solicitor today. Some figures they will be able to give you without looking at your situation in any detail, but others will only be possible after a precise valuation of what is going on