Selling one flat with entire freehold interest

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  • Selling one flat with entire freehold interest

    Hi everyone,

    Just wanted to check, I own a leasehold flat, one of two in a converted house, I am in the process of putting it on the market, viewings etc. I also own the freehold of the building, bought from the treasury solicitor several years ago. So I am selling with the share of freehold, I have already asked my solicitor and as I thought, I don't have to offer it to the leaseholder downstairs (who rents it out, a prof landlord) as I am a resident freeholder and as there are only two flats, less than half the flats are owned by other leaseholders. I don't particularly want to keep a half share in the freehold after I move (hopefully!!) so is it correct that I can sell my interest in the entire freehold to the new prospective owner of my flat? I am not inclined to sell the other half as it were to the other leaseholder as he has been an absolute nightmare since I bought it, and when I mentioned I was selling and was he interested in it at the point of sale, he made a great show of saying that the freehold wasn't important (????) as he had a long lease, but if I wanted to sell his to him he would pay half of what I paid for it but not a penny more. He wasn't interested if I tried to charge him any more than that to make a profit of any sort. Fair enough, I've given him his chance and as usual he stuck two fingers up at me.

    Thanks to all.

    W

  • #2
    Your post is slightly confusing. I am assuming you own the whole freehold on your own?

    in which case you are selling 2 seperate things-

    1) The lease to the flat.
    2) The freehold to the whole building.

    Both have seperate values, if the leases to both flats are long and the ground rent is low then the FH is not worth a huge amount on its own and I would market the flat as leasehold but include the freehold with the sale to the new owner.

    If the freehold has a higher value I would market the flat as leasehold with the option to buy the freehold for £x on top.

    Both of the above avoid the need to offer the right to first refusal but if the buyer decides not to buy the freehold you could be left with selling it on the open market which would then require you offering the right of first refusal to both the leaseholders first, plenty of investors out there willing to buy though.

    Be careful how the flat is marketed as using the terms freehold and share of freehold confuses buyers as many don't understand the leasehold.

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    • #3
      Hi and thank you for your comment.

      Sorry if the post looked a little confusing, you are correct in that I own the whole freehold. And thank you for confirming the best option for me. That is what I intend to do; offer the flat leasehold but with the freehold as a bonus, if you will. The leases are long, over 90 years so as you say the freehold on its own in that instance is not worth a fortune, but it is worth having to the leaseholder, and there is no point in me having any interest in it if I am not living there anymore.

      Many thanks again for your opinion.

      W

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      • #4
        Please note that this is the whole freehold, not a share of the freehold.

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        • #5
          Wobble1, is there any extension or Develoment opportunity? (add a flat/floor - build in the garden etc etc)
          Where is located the house?
          Double check if there are opportunities in the Freehold title to exploit at a large.

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          • #6
            As you say you don't not have to offer the freehold to your neighbour as you own one of the flats and there are two flats

            the other lessee cannot by definition become more than 50% and in any event where there are less than 10 flats the notice is validly served if served on all but one. So you don't have to serve a notice on him in any event

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            • #7
              Hi,

              Just wanted to check, noticed yesterday that the 1993 act has amendments added with regard to (among other things) the Right of First Refusal with regard to selling a freehold. It now says, the resident freeholder, if any, has to have owned the building since before it was converted in to flats i.e be the original freeholder. That can't happen often.


              However, as there are only two flats and I (the Freeholder) live in one of them and I am not likely to enfranchise against myself, I am ok to sell it if I wish to the purchaser of my flat if and when.

              Tricky thing this legislation lark.


              Excuse me for asking, but could anyone with experience of selling give me a brief run down of who asks what of whom and in what order? i.e Solicitors for both parties (or three, in the case of a chain). I'm not quite sure who is supposed to be asking what and in what order. And estate agents can be pushy, so I've found............

              Thank you good people.

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