Lease extension cost Q's (re flaky freeholder)

[Clifftopghosties]

Hi,

The lease on my flat is very low - c. 60 years. (My fault as I bought 20 years ago- although I do wonder why I wasn't warned it was relatively low when I bought it as a clueless younger person but that's beside the point).

Flat needs updating really & won't sell for a great price even with an extended lease.

Money is an issue for me even in terms of solicitors fees, so my first question is:

1. Can solicitor's fees be paid in full on sale of the property, along with payment of lease extension? (I'm aware I also have to pay freeholder's solicitor fees.)

My second question is more complicated. Essentially, the freeholder has not really fulfilled their duties over the years. E.g. communal hallway needs decorating & updating - nothing has ever been done. It's a fairly old converted house with 5 flats - freeholders live in one of them. When this was brought up (years ago) they said it's the leaseholder's responsibility. I believe this is not what it says in the lease. The outside of the building looks scruffy and I think it's also their responsibility to keep it in reasonable condition. All of this I presume affects the value of the flats.

Maintenance per flat has been £80 per month for some years (it was £40 previously).

A few years ago, someone else in the building extended their lease for £10k which was a similar length to mine. I'm wondering:

1. Could the freeholder's lack of upkeep of the building (and therefore legitimate use of maintenance money) be used as leverage (via a solicitor) to negotiate a relatively low lease extension cost? (I think the seller I've just referred to may have done this?).

1. Can anyone recommend a service/solicitor to deal with this - the lower the cost the better (obviously not to the detriment of good service)? I'm not even sure if it would have to be local (?) but if so, I'm in Hampshire/Dorset area.

Thanks in advance for any info or insights you might be able to share 🙏

I think that if a majority of lease holders in the block want to buy the freehold between them, the freeholder has to sell. Would that be something the other leaseholders would favour, do you think?

You could then set your own lease lengths and maintenance levels.

I'd be wanting to know what the freeholder has been doing with all your contributions!

Thanks for your reply @ArtAngel

To be honest, I'm so keen to sell & get out of the flat I don't think I'd want to do that (and other lease holders can be awkward here!).

But yes- where's the money gone?! They're very elderly and sweet in person - so it's awkward 😬

Landlord and Tenants Act 1985. You are entitled to see accounts receipt etc of how service charges have been spent

The freehold isn't just charging a service charge but also ground rent.
They have to keep it in reasonable condition but this is subjective.
Presumably your money will go towards a new roof etc when required.

From what I remember about living in a flat, the maintenance charges were significant. £80 a month isn’t going to cover much. They do have to provide you with accounts showing were the money goes. It is usual to pay into a contingency fund that will cover exterior decoration and repairs like new roof, new windows, paint work etc and they should have a schedule for when that work will take place.

Can you speak to the other neighbour on their approach? Sounds like assumptions. Ask them if they leveraged the lack of upkeep in negotiations and who they used?

Thanks all- i will try to contact the previous neighbour about his approach.

There has been the odd small repair done, so it could be that the accounts do add up. I guess once it's all being dealt with through solicitors, the accounts will have to be looked at so time will tell.

Thanks again for your answers.

When you sell your flat your buyers solicitors will want to see copies of the leasehold accounts, and also the schedule of repairs.