An area of the law that is expanding greatly at the moment involves the extension of Leases of flats and houses and the purchase by a leaseholder of the freehold interest in a house. There are several different areas of legislation and Chubb Bulleid have dealt with all of them.
The legislation is very particular and you will need careful guidance through the service of the relevant Notices, the drafting of documents and all other aspects of the work. If the correct procedures are followed a Landlord can be forced to either extend a Lease by 90 years or sell the freehold depending on the particular circumstances. Sometimes the law allows for individual house and flat owners to extend Leases or buy freeholds. At other times a collection of leaseholders within a larger building can club together to purchase the freehold.
There is also legislation ensuring that a freeholder must in some circumstances offer to sell the freehold to the leaseholders before the freehold can be sold to a third party. Also the management of the freehold can be taken from the freehold owner.
Chubb Bulleid are equipped to advise on all of this legislation.
Pricing will vary according to the work involved but is often shared as many may be involved. Ordinarily, costs are charged based on an hourly rate and the number of hours involved in the work. The complexity of the leasehold extension/enfranchisement will determine how long the matter is likely to take. If you would like an estimate, please contact us, but in the meantime you can see the hourly rates for the lawyers likely to work on your case below:-
| Average Charge Rate | |
| Partner | £300.00 plus VAT |
| Senior Associate | £250.00 plus VAT |
| Fee Earner or Associate | £225.00 plus VAT |
VAT is charged at 20%.
Are there any hidden costs or disbursements?
We will always be upfront with our fees at the start of a transaction. Disbursements are not always known at the outset. For example, you may require an indemnity policy to cover alterations to the property, the exact cost of which will not be known at the outset. However, common disbursements you can expect to pay include:-
| Disbursement | Average Cost |
| Copies of documents from HM Land Registry (e.g. title registers, title plans etc) | £3.00 per document |
| Official Search of Whole or Part at HM Land Registry | £3.00 per search |
| Land Charges Search at HM Land Registry | £2.00 per name |
| Bank Transfer fees | £30.00 plus VAT per transfer |
| ID checks (required under the Anti Money Laundering Regulations) | £25.00 plus VAT per person
|
| Registration fee to HM Land Registry | These range from £20 – £1,105 dependent on the value of the enfranchisement.
You can find more information about the Land Registry fees and how they are charged here.
We will, of course, advise you at the start of your matter how much you can expect to pay. |
| Stamp Duty Land Tax (SDLT) and Welsh Land Transaction Tax (WLTT) | SDLT/WLTT will generally not be payable in the case of a lease extension/enfranchisement. |
What work is included in those costs?
Each transaction is different, and the specific work involved will depend on the nature of your leasehold enfranchisement/extension. However, generally our costs will cover:-
- Obtaining and reviewing title deeds
- Engaging with the landlord/freeholder on your behalf
- Drafting any necessary paperwork and arranging for its execution
- Registering the lease at HM Land Registry
Is there anything not included?
Our costs include all work that is usually required to complete the lease extension/enfranchisement.
Should you require additional legal services (e.g. a Declaration of Trust setting out shares of ownership) these will be charged separately. You can find information about the other legal services we offer in connection with residential property here.
How long will the transaction take?
Many factors will dictate speed including the number of leaseholders involved and the responsiveness of the landlord or their solicitors. In a simple case, where a leasehold enfranchisement/extension is agreed quickly and there are no objections raised, we would expect the transaction to take 2 – 4 months.
More complex cases where parties are in dispute can take upwards of 6 – 12 months to complete.
