The first thing you will need is valuation advice.
If you have had an offer from the Freeholder for a lease extension, you still need valuation advice. What is on offer from them may not be fair or what you are entitled to under the Act.
Your Freeholder’s valuation may be over-inflated and the terms of the lease extension may not be satisfactory - (for example, Freeholder’s often wish to raise Ground Rents without making adequate concessions).
After we have undertaken the valuation and reported to you, we can assist with how to negotiate the matter, either informally or formally.
If we are unable to settle the matter informally your solicitor can serve a section 42 Notice. The section 42 Notice represents your formal offer and is the first stage of the legal process for extending your lease. Once a Notice is served, both sides must adhere to a strict timetable and to rules concerning costs. Austin Gray can recommend specialist solicitors.
Your Freeholder is entitled to have the lease extension formally valued at this point and he will serve a Counter Notice. You are liable for the Freeholder’s 'reasonable costs’, including his valuation fees and his solicitors fees.
After the Freeholder serves his Counter Notice there is a period of two months in which the valuation surveyors from each side will negotiate the price.
Most lease extensions are settled at this point, however, if an agreement cannot be reached the price will be settled by the First Tier Tribunal.
Once the price has been agreed, the Freeholder’s solicitor will draw up the new Lease or Deed and send it to your solicitor.