F/reversioner (flats) wants to sell- procedure?

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  • F/reversioner (flats) wants to sell- procedure?

    Hi,

    I own a freehold of 2 flats within one house converted into the 2 flats. Can anyone help with how to sell, who to sell to and do I have to approach the leaseholders first. The ground rent is £200-00 PER ANNUM rising every 25 years to £400-00 maximum each and they are both on new 99 year leases. thanks so much hope someone can help me I would be greatful for your assistance?

  • #2
    I have no idea at all if you should sell to the leaseholders first, but I would have thought they would give you the best price!

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    • #3
      Originally posted by idc View Post
      Hi,

      I own a freehold of 2 flats within one house converted into the 2 flats. Can anyone help with how to sell, who to sell to and do I have to approach the leaseholders first. The ground rent is £200-00 PER ANNUM rising every 25 years to £400-00 maximum each and they are both on new 99 year leases. thanks so much hope someone can help me I would be greatful for your assistance?
      To sell, you as freehold reversioner need to proceed under LTA 1987. Lessees have a right of first refusal, although this would need BOTH of them to participate. You can otherwise sell privately or at auction, to anyone at all, BUT lessees must be served with a statutory Notice (under whichever section of LTA is applicable to your circumstances) so that they can decide whether or not to intercept sale.

      First step: determine how much f/r is worth. Senior Member sglacy is good at these calculations!
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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      • #4
        Allsops Auction ( www.auction.co.uk) in their sale dated 26 March 2008, Lot no. 121 ( 2 flats with annual ground rent at 400 pounds per year ), was sold for 5000 pounds.

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        • #5
          If the lessees want it to the extent they go under teh Act you would get
          £5,500 plus 0.8 of 1% of the value of the flats

          If not and you dispose of it at auction you will get as Tenant 29 suggests £5,000 although that is a bit below the average

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          • #6
            Originally posted by tenant29 View Post
            Allsops Auction ( www.auction.co.uk) in their sale dated 26 March 2008, Lot no. 121 ( 2 flats with annual ground rent at 400 pounds per year ), was sold for 5000 pounds.
            Thank so much for the reply.... it helps regards Ingrid

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            • #7
              The achievable sale price depends on whether:
              a. lessees self-manage flats; or
              b. lessor has to manage. This has the:
              i. advantage of insurance commission; but
              ii. disadvantage of all the hassle.
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment

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