Once an application has been received, and the administration fee has been paid, within 3–5 working days HomeGround will send you the price at which the freeholder would be willing to extend your lease. This offer price is always inclusive of the freeholder’s fees and expenses and VAT (if applicable), so there are no hidden extras.
Once you have received this offer price, you can:
Once agreement is reached between you and the freeholder, then HomeGround will instruct the freeholder’s solicitors to formalise the matter.
Our freeholders do not require a leaseholder to appoint their own solicitor in order to complete the conveyancing stage of the transaction.
If you have a mortgage, your mortgage provider may require you to appoint your own solicitor. We recommend that you contact your mortgage provider to check. If this is the case, you will need to provide contact details for your solicitor.
If you and the freeholder are unable to agree a price you do retain your rights under the Leasehold Reform Housing & Urban Development Act 1993 and you can proceed with formal negotiations.
The fee covers the costs of obtaining a landlord offer price. If an agreement is reached on an informal basis, the fee will be deducted from the price upon completion of the transaction.
HomeGround undertakes various services on behalf of your freeholder, including:
HomeGround and the landlord are only able to negotiate with the current owner of the property.
You will receive an offer letter that states the terms under which the landlord is prepared to extend your lease.
The offer will be valid for 90 days, and it will reflect the value of the landlord’s interest in the property at the time of your application. It will be inclusive of the landlord’s legal and administrative costs for completing the sale.
The landlord offer price represents the long-term value they attribute to their interest in the property.
Since HomeGround do not represent former owners of the freehold title, we will not have been privy to any previous discussions you may have had during that period of ownership.
However, we would like to emphasise that offer figures issued on behalf of our clients are negotiable and that you do have the option of taking independent advice and of putting forward a counter-offer, which will receive due consideration.
If you have applied for terms to extend your lease and you agree to the terms on offer, the fees payable at conveyancing stage are made up of:
*Please note that the landlord offer price fee of £150 will be refunded on completion of your lease extension.
The landlord’s offer will be made on the basis that the ground rent continues to be payable for the original term of the lease (inclusive of any reviews), and thereafter reverts to a peppercorn for the duration of the extension period. This offer is made in compliance with the provisions of the Leasehold Reform (Ground Rent) Act 2022.
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