PDA

View Full Version : Fee for Garage Conversion



smithpr
08-12-2009, 08:55 AM
Hi there, new to the forum and having problems with a fee my leaseholder wants to charge for consent for a garage conversion.

I own a detached house and pay a ground rent to the leaseholder of £115 per annum. The house has an integral garage which we want to convert into a room. There is 91 years left on the lease.

I approached the leaseholder who charged me a £40 fee initially to ask for the consent. They came back to me and pointed out that the lease had a covenant stating that the garage had to be used to house a motor car they would only grant consent if I paid them a "premium" of £655.

I challenged this and they basically said that the charges were fair and reasonable and unless I accepted their terms of conditions of the consent (which they wont issue to me) they wont accept payment. I believe this is because if I do accept their terms and conditions and make the payment - I cannot then go to tribunal to challenge the fee. They have also pointed out they don't have to grant consent.

Help - I feel the fee is extortionate.

jeffrey
08-12-2009, 09:38 AM
1. You are the leaseholder; you meant to refer to L as 'freehold reversioner', I guess.

2. If you've been the leaseholder for at least two years, your better option is to buy the f/r (house + garage).

3. The cost should be no more than about £2500 + V's fees of about £800 inc. VAT.

smithpr
08-12-2009, 09:53 AM
Thanks very much for the advice - appreciated.

I believe one of my neighbours approached them several years ago and they asked for around £14,000 !!

As I understand it, if I get an independent valuation, I can challenge it though - is this correct ?

jeffrey
08-12-2009, 09:57 AM
Thanks very much for the advice - appreciated.

I believe one of my neighbours approached them several years ago and they asked for around £14,000 !!

As I understand it, if I get an independent valuation, I can challenge it though - is this correct ?
Once you've served a statutory Notice of Claim, the Leasehold Reform Act 1967 procedures apply. You become liable for:
a. V's legal fees/VAT/disbursements; and
b. the cost on one only valuation by V's surveyor. If you do not agree that figure and cannot negotiate a compromise price, you can go to LVT (with your own valuer's figure and 'comparables' as evidence).