Supplemental Lease

[allewitor]

Can anybody tell me if there is a ceiling on how much I can charge a long leasehold tenant for a supplemental Lease. Is there a set length of time a supplemental lease should run it would it have to reflect the length of the original lease?

[sgclacy]

is this to give effect to a lease extentsion. I. Recently dealt with a firm and to give effect to a lease extentsion a lease was registered agindt my freehold title that commenced when the old lease finished and was for a term of 90 years. This saved the lessee the admin costs of her lender approving the new lease. It was not quite the same as a statutory lease extentsion as the ground rent is still payable

[allewitor]

No this supplemental lease would be to regularise an addition of a structure to the Leaseholders Title, which as yet is not recognised as being owned by them. The have constructed an extension to their flat without consent and as therefore are in breach of their lease.

[jeffrey]

No this supplemental lease would be to regularise an addition of a structure to the Leaseholders Title, which as yet is not recognised as being owned by them. The have constructed an extension to their flat without consent and as therefore are in breach of their lease.
In that case, there is no formula as such. One approach would be to agree:
a. value of flat before addition;
b. cost of building works; and
c. value of flat with addition.

T has gained (c-a-b). That is the amount to negotiate over. L might demand half of it, for instance, PLUS T must pay L's fees.

[blckbrd]

If it helps, a particular London ALMO has fees as follows:

RTB Supplemental Lease (e.g. purchase of loft space, garden or
basement) £450
Standard Deeds of Variation and Licences for alteration (e.g. windows)
(i) normal £420*
(ii) within 3 working days £620*
*Composite fee for deed of variation and licence for alterations
Other Deeds of Variation (e.g. lessee request to change plans, building into loft space affecting demised premises)
(i) normal £350
(ii) within 3 working days £500
Other Licences for Alterations (non standard) for example, structural alterations (such as removal of load bearing wall)
(i) normal £350
(ii) within 3 working days £500
Letter of consent (e.g. for installing a new flue) £100

No VAT charged.

The term 'supplemental lease' was only used for additional space pruchases.

For a retrospective licence and the DoV it would be £700 normally but if it were argued that they attracted the composite fee it was given at a rate of £500.

[jeffrey]

If it helps, a particular London ALMO has fees as follows:

RTB Supplemental Lease (e.g. purchase of loft space, garden or
basement) £450
Standard Deeds of Variation and Licences for alteration (e.g. windows)
(i) normal £420*
(ii) within 3 working days £620*
*Composite fee for deed of variation and licence for alterations
Other Deeds of Variation (e.g. lessee request to change plans, building into loft space affecting demised premises)
(i) normal £350
(ii) within 3 working days £500
Other Licences for Alterations (non standard) for example, structural alterations (such as removal of load bearing wall)
(i) normal £350
(ii) within 3 working days £500
Letter of consent (e.g. for installing a new flue) £100

No VAT charged.

The term 'supplemental lease' was only used for additional space pruchases.

For a retrospective licence and the DoV it would be £700 normally but if it were argued that they attracted the composite fee it was given at a rate of £500.
But are these:
a. premium (purchase) amounts; or
b. legal fees?

[allewitor]

With regards to my original question - if I offer a licence to the tenant at say £15k for the extension to be regularised does that become legal binding, or can I change my mind and request that the balcony is removed and the porch returned to its original condition?

[Poppy]

You could both agree to make it a condition that the property is reinstated at some future point. But why would you want to? I mean, why even agree to these works if you feel in some way (and this is backed by, say, a surveyor's professional opinion) this may be detrimental to the property as a whole? What's going on in your mind? Why don't you say "no" if that's what you want?