Lease Extension Legal Fees
Leaseholders are strongly advised to instruct a solicitor with experience in lease extensions during the process. Unfortunately leaseholder's are responsible for not only paying their own legal fees but also those of the landlord and any other non-competent intermediary leaseholder. Here we set out the expected costs.
Likely leaseholder legal fees
Assuming the premium payable for the lease extension has been agreed, the average (median) legal fees paid by leaseholders to a solicitor representing them during the process all the way through to completion of the new lease and registration at the Land Registry is currently £850 + VAT.
Likely freeholder legal fees
Assuming the premium payable for the lease extension has been agreed, the average (median) legal fees paid by leaseholders to a the freeholder's solicitor is currently £900 + VAT.
Likely freeholder surveyor fees
The average landlord surveyor fees are £500 + VAT.
Total (if premium is pre-agreed) - £1,450 + VAT including freeholder's surveyor's fees.
Tips for lower fees
All of the above fees are payable by the leaseholder as set out in the Leasehold Reform, Housing And Urban Development Act 1993. To keep costs to a minimum:
- Use a solicitor outside of London. There are plenty of experienced lease extension solicitors around the UK, we recommend using a solicitor outside of the big cities who are able to offer a significantly lower fee than those in cities. However unfortunately leaseholders cannot choose which solicitor the freeholder should use.
- Find a solicitor who has experience and in-depth knowledge of lease extension valuations, it is much more cost effective and cheaper than instructing a stand alone surveyor. Hetts Solicitors are an example.
- You may want to attempt to agree the premium with the landlord first before instructing a solicitor.