Freehold valuation

[Anna1985]

Trying to find somebody to carry out the freehold valuation.


So far no luck, any recommendations?
Thanks

[vmart]

Recommendations are against forum rules.

Check the RICs website. Scroll down to the bottom of the page and select the 'Find a Surveyor' link. Enter your postcode to populate the page with a list of surveyors near you.

[Anna1985]

I did, tried several people - 0 reply.

[vmart]

I am surprised but you will just have to google or check online directories for surveyors in your area. Sorry, I cannot be of more help but there are plenty of surveyors offering freehold valuations.

[Anna1985]

There are lots of people who do valuations. As soon as you mention freehold - we will come back to you and they are still coming back.

I'm really wondering if it is really worth to have it valued.

[vmart]

May I ask why you need the valuation?

TRY THIS: telephone a solicitor that deals with enfranchisement (google 'enfranchisement solicitor' and put in your postcode). Call them and ask if they can recommend a surveyor specializing in valuing freeholds.

[Anna1985]

Thank you for the advice. We basically know the price range of the freehold, it is more to validate it as an asset and to see if the value of it will be affected by actual state of the property.

[vmart]

Hi Anna

You could try searching for desktop valuations of freehold. This service would be adequate for valuation purposes though not suitable re condition which would require a site survey. Nevertheless, speak with a company offering desktop valuations and ask them if condition impacts on value of freehold to decide if this route (which is much cheaper) is suitable.

[Macromia]

Thank you for the advice. We basically know the price range of the freehold, it is more to validate it as an asset and to see if the value of it will be affected by actual state of the property.

Unless the leases require the freeholder to maintain the building without allowing them to recover the costs from leaseholders, or the building is in such a poor state of repair that repair costs are likely to be deemed irrecoverable and thus fall on the freeholder, I doubt that the value of the freehold will be affected by the state of the property - it would have to be in a very poor state for that.

More important considerations for the valuation are the length of the leases (i.e. whether premiums are likely to be paid for extending them), and the amount of ground rent/ commercial rent that can be collected.

[Anna1985]

More important considerations for the valuation are the length of the leases (i.e. whether premiums are likely to be paid for extending them), and the amount of ground rent/ commercial rent that can be collected.

Thanks for advice. It is such a strange time

[Gordon999]

Are you looking for enfranchisement of a leasehold house uder the 1967Act ? or enfranchisement for block of flats under the 1993 Housing Act.?

You can download free guides to valuation for both situations from www.lease-advice.org

[Anna1985]

No, we are negotiating informally.

[michelle230]

You are always advised to enfranchaise formally rather than informally. It may cost you more in fees (you have to pay both sides)
You need to make very sure that no onerous terms are cleverly sneaked into your new lease/variation. Also a good enfranchisement solicitor may be able to negotiate to remove any unpleasant clauses e.g. permission fees.Are you going for the statutory 90 years increase?
PM me if you want more details.

[Macromia]

You are always advised to enfranchaise formally rather than informally. It may cost you more in fees (you have to pay both sides.

I agree with michelle, you need to be very careful with informal lease extensions. Although the price that you are quoted may be cheaper, the actual cost may be far more in the long term.
As an example (and without quoting exact details) both my neighbour and I extended our leases within two year of each other. My neighbour negotiated an informal extension which added 35 years to the term of the lease but increased the ground rent payable to £200 per annum - increasing by a further £200 per annum every 25 years for the remaining term of the new lease.
My extension via the formal route gave me an additional 90 years on the lease, at a peppercorn (zero) ground rent, for a premium that was about 30% higher than my neighbour paid. The additional premium I paid is the equivalent of less than 30 years of the ground rent the owner of my neighbours lease will be paying, and they will have to pay a considerable further premium to increase the length of the lease to anything like the term I now have.

Of course, your circumstances might make a difference. My neighbour was intending to sell, and most buyers don't give much consideration to how much the ground rent is or what it might cost to extend a lease in the future.

[Anna1985]

We are buying freehold, there is no change of leases, apart from maybe extending them in one transaction to save on legal costs in the future