Freeholder wants to rent out parking spaces - can I buy the freehold?

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    Freeholder wants to rent out parking spaces - can I buy the freehold?

    Hi. I own a leasehold flat in London. I have no right to park my car in the driveway, but the freeholder, who also is lives in one of the four flats in the property has kindly allowed me to park there since I bought the flat some 3 years ago. Yesterday she emailed everyone to say that she wants to monetise the parking spaces and rent them out at £150 per space per month. My lease has no claim to a parking space and no parking area is demised to my flat. She lives in another flat in the same property which is also is leasehold with no parking. The whole property freehold has the parking included, not any flat. I assume she is entitled to do this, but it will mean 3 cars parked immediately outside my bedroom window and I'll have to street park. I've had no notice from the council for a change in use from residential to commercial for the parking scheme. Is there any way I can stop her doing this?

    Will this invalidate our buildings insurance? Will I have to pay for maintenance for the area even though I can't now use it? Another leaseholder has been parking their car there for 30 years!

    If I force her to sell the freehold (another flat owner is also keen to buy), I assume I'll be buying the freehold that includes the parking and then when I extend my flat's lease I can issue my flat with a parking space? The freeholder's leasehold flat is not demised with a parking space.

    Obviously NW London is an expensive area, but any idea how much this would set me back or if it is a sensible way to go? 2 Bed flats are approximately £550-600k, £150 ground rent per annum with 90+ years left on lease. All suggestions welcome.

    #2
    Well now you have to add £5400 parking space income to the freehold value, I would be looking for £120k if it was mine.
    I think you might be better off buying one space and incorporating with your lease. Offer ten grand maybe ?? It has to add more than that to your flat and convenience value...

    Comment


      #3
      What would you value it without the parking income? I agree that making an offer may be the way forward.

      Comment


        #4
        Originally posted by sgozzard View Post
        What would you value it without the parking income? I agree that making an offer may be the way forward.
        I'm not qualified to value it and I am not sure you would qualify for collective enfranchisement in these circumstances either - but assuming 4 leases are the same and ground rent is fixed at £600 you would be looking somewhere over 20yp or at least 12k but formal calculation is complicated and would need more detailed value information

        Comment


          #5
          Originally posted by Section20z View Post

          I'm not qualified to value it and I am not sure you would qualify for collective enfranchisement in these circumstances either - but assuming 4 leases are the same and ground rent is fixed at £600 you would be looking somewhere over 20yp or at least 12k but formal calculation is complicated and would need more detailed value information
          You need a majority of flats to support buying the freehold title . Check with your local council on policy for street parking.

          So if you have 3 flats acting together you can make an offer say around 22 times x £600 GR to buy the freehold = £13,200 for the freehold.

          Comment


            #6
            Originally posted by sgozzard View Post

            Obviously NW London is an expensive area, but any idea how much this would set me back or if it is a sensible way to go? 2 Bed flats are approximately £550-600k, £150 ground rent per annum with 90+ years left on lease. All suggestions welcome.
            The reversionary value at 90 years is around 1.25% of the value of the flat

            So the freehold could be £600 per annum capitalised at say 6% = £10,000
            Plus 1.25% of £500k X 4 = £25,000
            Total = £35,000

            Plus the value of the car parking spaces

            As Section20z advises better off agreeing a deed of surrender and regrant to incorporate the space


            Comment


              #7
              And if your freeholder is reading this she can grant a long lease on the car parking spaces to anyone she likes and scupper your plans entirely

              Comment


                #8
                Thank you everyone for your replies. There's a lot here to think about. I don't know the intentions of the freeholder at present. She is also my next door neighbour, so may reach out politely first.

                Comment


                  #9
                  Nearly always a very good idea.

                  Comment


                    #10
                    Depending how old they are it might be worth checking the planning permission. Sometimes it's only granted if provide off road parking for the flats.

                    Comment


                      #11
                      there is a case on point and this concerned a small development called Avenue Close off Avenue Road London NW8. The freeholders one day decided to charge to park on the road that had been free parking for the residents for the previous 60 years. The residents sued on the basis that the parking had been free for so long that people had purchased flats in the belief that they would continue to be able to park - and they won!

                      Comment


                        #12
                        Just realised that compulsory enfranchisement is not possible when the freeholder is living in the block, which is converted from a house.

                        Comment


                          #13
                          Originally posted by Gordon999 View Post
                          Just realised that compulsory enfranchisement is not possible when the freeholder is living in the block, which is converted from a house.
                          I too must take the shame - I overlooked that point as well

                          Comment


                            #14
                            Originally posted by sgclacy View Post

                            I too must take the shame - I overlooked that point as well
                            Don't sweat it, I'd already pointed that out in my second post to OP 😁

                            Comment


                              #15
                              Given that you had only been allowed to park there a few years, you might not have as persuasive a right as the Avenue Close cases. Worst case, cough up

                              Comment

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