Freehold valuation

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    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.

    Comment


      #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.

      Comment


        #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. ,

        Comment

        Latest Activity

        Collapse

        • Successful RTM claim
          skidder
          Hi all,

          I wonder if anybody can be of assistance.

          Cutting a long story short we have managed to obtain the RTM from a very aggressive freeholder. The right will transfer to us in August.

          It is a small block of four converted one bedroom flats

          We have...
          24-05-2018, 14:03 PM
        • Reply to Successful RTM claim
          skidder
          Hi Gordon999

          I have received a notice confirming RTM will commence in August. The freeholder states that the insurance will run out on this date and I will have to arrange. Policy is currently £1920 for four flats. I need to name the freeholder on my policy.

          Also can you confirm...
          27-05-2018, 10:38 AM
        • Reply to Successful RTM claim
          Gordon999
          Your RTM Is due to commence in August and will take over running the service account and maintenance of building. The RTM decides everything and freeholder is left with collecting the ground rent and dealing with forfeiture of lease (which is unlikely to happen ) .

          When does your current...
          27-05-2018, 10:21 AM
        • Reply to Successful RTM claim
          skidder
          Thanks Leaseholder64 much appreciated.

          So as above I do not need to go through another section 20. i.e. If all 3 leaseholders sit down and agree specs etc costing say £5k. We would all divide the amount correctly and sign papers saying monies paid and agreed etc. Would this be sufficient?...
          26-05-2018, 15:32 PM
        • Reply to Successful RTM claim
          leaseholder64
          Section 20 protects the leaseholders, not the freeholder. If the freeholder objected it would be because the proposed work was not sufficient to comply with the lease, not because of consultation issues.

          You should get a lot of information on handover. Even if the contractors are abandoned,...
          26-05-2018, 15:15 PM
        • Sub Letting Fees
          isthisnameavailable
          Another topic on this, sorry I can see there have been plenty.

          I have today received a letter from {Mod - name removed} on behalf on {Mod - name removed}. They are saying I have not replied to their letter dated May 19 2017 (I haven't) and things will be passed on to external solicitors...
          21-05-2018, 18:22 PM
        • Reply to Sub Letting Fees
          leaseholder64
          I think the organisation in question is not a managing agent. They make money purely from acting as an agent for the freeholder for ground rent and administration charges. i don't think they manage the property.

          I suspect you have to think long and talk to your MP as it looks like they...
          26-05-2018, 14:58 PM
        • Reply to Sub Letting Fees
          Gordon999
          What is your recommendation if the freehold was sold without Right of First Refusal offer to leaseholders and current freeholder is using a managing agent to demand extortionate subletting fees ?
          26-05-2018, 14:15 PM
        • £150 late penalty fee
          amog78
          Our company has recently been charged £150 late penalty fee for failing to file our accounts on time. The person responsible for this refused to sign our accounts as he had resigned as a Director (although the accounts document had his name on it). The former Director made no attempt to inform anyone...
          21-05-2018, 16:33 PM
        • Reply to £150 late penalty fee
          AndrewDod
          Exactly. Service charge ledgers are never/should never be filed --- they have nothing to do with the Company as such. The Company (whether dormant or otherwise) still has to file accounts (even if dormant accounts). Failure to file accounts leads to an automatic initial £150 fine. Failure to file the...
          26-05-2018, 09:17 AM
        Working...
        X