Myatts Field Court 18 McDowall Road London SE5 9JS
Your Freeholder Myatts Field Court Management Limited has resolved to permit lease extensions to any leaseholder with a share of the freehold using our approved format of lease extension. This will involve your lease being increased from the present remaining term to 999 years from 1st January 2021. Your ground rent will be reduced to a peppercorn (nil) rent.
Is there a cost for the extension?
Your Freeholder will not charge you a Premium for extending the lease but you will be responsible for both your own and your Freeholder’s legal fees and tax liabilities.
Your Freeholder has appointed us deal with the lease extension on their behalf.
Due to the friendly nature of the transaction you have the option of also appointing us to act on your behalf. By keeping the matter under one roof we can offer a low total flat fee for dealing with the whole process which is detailed below.
What is the charge for the legal work?
The fee structure is based on a fixed fee.
Our fees are £450 plus VAT plus disbursements.
The disbursements comprise of £7.20 for a copy of your title, £3.60 for your lease and £40 to register the lease extension. These are all Land Registry charges and VAT where applicable. This is all you will pay if you do not have a mortgage.
If you have a mortgage on your property you may need to pay your mortgage lender an administration fee. This varies according to lender – some do not charge but others typically charge up to £105. A few lenders charge more.
Can you tell me which mortgage lenders will charge an administration fee?
Most lenders do not charge, for example Nationwide, HSBC, TSB and Halifax/Bank of Scotland. NatWest charge £85 and Santander charge £105 . It is rare for the charge to exceed £100.00 although this can sometimes be exceeded for commercial lending or some non standard buy to let lenders (for example CHL who insist on their own solicitors charge £400-500 plus VAT)). These charges do however alter over time. If you own the property via a company or you have a portfolio or commercial mortgage facility other charges may apply.
Will the fees change?
The fees are fixed but there are a few limitations:
The fees are fixed for 5 years (from 1st January 2021) and thereafter they will rise after this period in line with the Retail Price Index.
VAT may increase or decrease over time.
The disbursements depend on the current fee structure charged by the Land Registry (these can go down or up over time).
The costs only relate to a single mortgage – if you have a second charge (with a different lender) then a further fee of £100 plus VAT will apply. This will not affect most people.
If there is a fundamental change in the procedure required to deal with lease extensions we reserve the right to review the charge. However this is very unlikely to happen as the procedure has not changed in the last 25 years or so.
Why would I need to extend my lease?
Lenders have become more cautious since the financial crisis. Where a share of freehold was purchased pre 2008 the lender would generally not be concerned with the length of the lease. However now they take a more critical view because they realise that they cannot put their mortgage onto the share of the freehold and only have security over the leasehold title. This has caused them problems if they come to repossess and sell.
Because Lenders have become more cautious this has affected advice lawyers give their clients about purchasing a lease with a share of freehold and even some estate agents are advising flats owners with a share of freehold to extend before they attempt to sell.
Do I have to do it now?
No. You do not have to. The offer is open indefinitely. The current lease length may be sufficient for your needs but when you come to sell or remortgage you may find that the position is different from when you purchased. You could deal with the lease extension at that stage as your Freeholder has agreed a long term deal with us so that you can extend now or in the future.
However some people will want to avoid the worry of dealing with it later or of the potential delay to any sale if they left it to that stage. We would therefore encourage flat owners to take this offer up now.
Is there any qualification requirement for the new lease?
No, provided you own the flat and hold a share in the freehold you can extend without paying a premium to the freeholder.
Do I have to wait 2 years from when I purchased the flat to extend the lease?
No you can extend as soon as you purchase.
How long will the process take?
This depends on whether you have a mortgage or not. If there is no mortgage then normally the lease extension could be completed within 2-3 weeks. If there is a mortgage it will be around 4 weeks.
However the Land Registry may take some time after completion to register this change (up to 12 months). But if the matter is urgent e.g. for a sale or remortgage we can expedite the application with suitable evidence and the matter should be registered in about a week.
What changes are being proposed to the lease?
The term (length) of the lease will be extended to 999 years from 1st January 2021.
The ground rent will be reduced to nil (a peppercorn).
No other changes are proposed. Your lease will continue as before.
These changes were proposed based on an initial sample of leases and consultation with the Freehold company. This may however change if variations in the leases are discovered as the process goes on.
Who are we?
Kenneth Elliott + Rowe Limited (KER) in Romford Essex. We will deal with the transaction.
Your primary contact is Mark Sadler (direct line 01708 707860 / switch board 01708 757575 or email firstname.lastname@example.org ). Mark is a Director in the firm. If he is not present then Fred Rylah, also a Director, will cover during absences and holidays. He has two assistants Vicky Mayes and Diane Leiser who also may be able to assist with your lease extension..
KER specialise in lease extensions in similar situations. We have acted on many hundreds of these types of transactions and offer a fixed price. It was important to the Freehold company that they chose a specialist firm to deal with the extensions.
The firm are also a Conveyancing Quality Scheme (CQS) approved firm by the Law Society. KER are regulated by the Solicitors Regulations Authority (SRA) and hold £10,000,000 indemnity insurance cover.
What are our full address and contact details?
Kenneth Elliott + Rowe Limited Solicitors
18 Eastern Road
Telephone (Switchboard) 01708 757575
Fax: 01708 766674
DX: 131528 Romford 8
Contact Mark Sadler (direct line 01708 707860 or email email@example.com ).
How do I start the process?
You need to complete and return the Flat Owners Questionnaire (download below) to us with a copy of your identification. This can be by email, fax or post. We will then do the rest.
Do I need to speak to you before proceeding?
No. We are aware of your needs and you can simply return the form to Mark. This can be scanned with a copy of your identification, faxed or sent in the post. If however you wish to discuss any issues with him beforehand or ask him a question either call or email (direct line 01708 707860 or email firstname.lastname@example.org ).
Will I have to send any original documents to you?
No. We will obtain a copy of your title deeds and lease. We will, due to the nature of the matter, work on copies of your identification and carry out our own electronic Money Laundering checks as required. These documents can be sent in the post or scanned and emailed (to email@example.com) or faxed to 01708 766674) with the questionnaire.
Can I see the terms and conditions on which the firm is to be engaged?
Yes. Please see the link to the client care letter giving details of the charges and their terms and conditions below. We are regulated by the Solicitors Regulations Authority. We will send you a copy of the client care letter and terms and conditions when you return the form if you wish.
When do I pay your bill?
The bill will be sent to you when you have the final documents to sign in readiness for completion i.e. the lease extension deed and mortgage documentation (if any). It can be paid by cheque, card or electronic payment.
Can I use my own solicitor?
If you want to obtain your own separate representation then you are free to do so. However you will still have to pay for us to draw up the lease and act for the Freehold company. Our fee will still be £450 plus VAT. Any disbursements would normally be incurred by your own solicitor.
What will happen to my title deeds?
The Land Registry moved to an electronic system many years ago. You may not have realised this but there are no longer any paper deeds. Documents that you may have stored in your bank or with your solicitor are not the actual title deeds any more. We will not need to disturb the whereabouts of your existing deeds to progress.
This also means when your lease extension has been completed and registered then the Land Registry will retain an electronic copy. An official copy can then be obtained by your lawyer when you sell at the press of a button for a fee of £3.00. The advantage is that the deeds can never be lost. We will send you copies of the title deeds at the end of the process showing the updated lease details.
What if I have any further questions or queries?
Please call or email Mark Sadler (direct line 01708 707860 or email firstname.lastname@example.org ). Please mention the property address in any email.