Freehold valuation

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    Freehold valuation

    Hello

    After a conversation with my neighbour I decided to look in to buying the freehold of our house as they did with theirs at a cost to them of £500 all charges included. It has an original lease of 999 years and is about 100 years in with a ground rent of £5 per year, it looks as though a private company bought this about 20 years ago for whatever reason.

    Since buying the property we have not had any demands for ground rent and indemnified for absent landlord. I dug out a copy of our lease and after also looking at the notes on our conveyance noticed they’re are some covenants such as keeping in an good state of repair and not erecting any temporary structures. So hopefully nothing too restrictive as far as I can make out or that our solicitor noticed and the previous owners have indeed already extended. Therefore with the large amount of time left on the lease, low rent and seemingly few serious restrictions (although before doing any work I’d be reassured by having the lease thoroughly checked, who is best to do this?) it is not a massive issue for us.

    After looking thorough this wonderful site and reading various other bits of advice decided to ask the landlord about selling the freehold to us. We have now received that valuation of £4750 plus £1200 for legal costs. To my mind with very limited knowledge, that seems very high, is that the case or am I wrong in my assumption?

    What are my options now? Is it a case of leaving things as they are, countering the offer (obviously I’d need an idea of what it is actually worth) or going down the statutory route and what costs can I expect there? More than the landlord has already quoted?

    For us it’s more of peace of mind and to be honest I’m quite annoyed that this company has come along and bought our freehold with the only aim seeming to be the extraction of money wherever they can, so would ideally like rid of them but with the added bonus of not worrying about any covenants should we wish to do anything.

    Thanks for any help.

    #2
    The offer to sell freehold to you at £4750 is OTT .

    Your counter offer to buying the freehold title for leasehold house on 999 years lease should be pitched around 20 times the annual ground rent = £100.

    You can check the name of current owner of freehold title by paying to download a copy from Land Registry Online , it costs about £3 by credit card. It will show if the title is for your house only or for several properties in the same street. If the title covers just your house, the cost of transfer will be low and you could offer say 200 pds for conveyancing costs. .

    Make an offer at £300 and see what happens. Just point out the Guardian newspaper dated 21 Dec 2017 reported the Government will be introducing new laws to end the ground rent for leasehold houses.

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      #3
      Great, thanks for your response. I suspected they were trying it on and after speaking with my solicitor they confirmed the same. The company I'm dealing with don't seem the the type to negotiate especially as their legal fees alone are said to be £1200, so I think I'd be wasting the cost of the postage stamp in responding to them with a counter offer. I think I'm as well to leave things as they are and hope the government get to grips with the issue, I may write to my MP to add my name to the list of concerned homeowners.

      Thanks again.

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        #4
        If the cost of freehold title is £300 , you should buy it.

        When you come to sell, you may easily lose £5K if it is under leasehold title. ,

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