Value of freehold

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  • sgclacy
    replied
    Sunshinesetter,

    For a solicitor to open the file and deal with the various enquiries raised they have got to charge around £1,500 in total. The way in which they have chosen to allocate the fee they need does seem somewhat bizarre,

    If it subsequently transpired that Section 5 were not required because say one lessee owned all three flats I am sure they would not do the conveyance for just £125.

    I am just wondering whether it was £450 plus VAT for the conveyance and £125 plus VAT for the servitude of Section 5 Notices ?

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  • Section20z
    replied
    There is a lot more to the value than NIL, you should really speak to a professional ground rent broker. They will give you experienced value advice and issue section 5s if required.

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  • Sunshinesetter
    replied
    Thank you Gordon999
    I have read through the lease advice and it is informative.I do like your last suggestion about just transferring the freehold registration at land registry but i know the other leaseholders have no interest at all in the freehold.
    Is it relatively easy to issue the letters myself as I can find no templates for guidance?Otherwise I will have to see if the purchaser is willing to pay to cover the solicitors fees although they do seem ridiculously high.Many thanks

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  • Gordon999
    replied
    1. When selling the freehold title , the leaseholders have RFR ( right of first refusal ) which is explained in the free guide published by LEASE.

    https://www.lease-advice.org/advice-...first-refusal/

    2. Yes , you can formally serve the RFR notice yourself .

    3. For building with 3 flats and all leases for 980 years with nil ground rent , the value of the freehold title is Nil. Its better if the leaseholders own the freehold title to avoid being controlled by an abusive external freeholder or managing agent, demanding excessive consent fees .

    Or informally , you can ask all the leaseholders if they collectively agree to accept the freehold title of the building at NIL cost and each leaseholder contribute/pay the transfer charges for registration at Land Registry.

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  • Sunshinesetter
    replied
    Selling leasehold flat and freehold of building of 3 flats .Other leaseholders have no interest in acquiring freehold.On a previous post I asked about valuing the freehold and one reply said sell.for cost of solicitors fees.Have received quote from solicitors of £125 + vat for sale of freehold and £450 + vat for each notice issued .Honestly thought an extra zero had been added.Double checked and that apparently is the correct cost.Seems exhorbinately expensive for just sending out 2 letters effectively or am I just out of touch .
    Any thoughts and advice please would be welcome.Can I issue the form or a letter myself ?Thank you

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  • Section20z
    replied
    No but it's acceptable for buyer to pay the fees

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  • Sunshinesetter
    replied
    Is it acceptable to charge the sols fees for the sale of the freehold from the sink fund or is this bad practice?I really don't want to be unfair.

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  • Sunshinesetter
    replied
    Thank you all that's helpful.I didn't think it had much value

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  • Tipper
    replied
    When we sold our three flats, with 999 year leases and nil ground rent each, to new owners we just included the 'shared' freehold as part of the package.

    Our main reason was to wash our hands of it and be free of the tie of being 'responsible' for everything that needed doing to the building in the future, ie, having to organise all maintenance and works for ever more!

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  • Section20z
    replied
    It's only value is insurance commissions and management charges, licences etc but we would need to know what lease says, but definitely more than £300 as it would bring that in annually purely on insurance commision.
    No idea why your solicitor would want the value but best stick it in an auction or sell through one of the established Ground Rent Brokers.

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  • Gordon999
    replied
    The value of the freehold title is based on the ground rent income and may only be a "nominal amount" if all are on peppercorn ground rent. The 3 flat owners should contribute £100 each and buy the freehold from you.

    The unspent service charge money belong to the leaseholders and you cannot sell that.

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  • Sunshinesetter
    started a topic Value of freehold

    Value of freehold

    I need to put a value on the freehold for selling but have no idea if it is worth much if anything.It is for 3 flats with peppercorn ground rent and a total of service charges of £500 pa.The leases are for apx just over 980 years each.Sink fund is just over £600 and after insurance has to be repaid to each flat at end of year.Any advice appreciated please as solicitor is requesting a value.Existing flat owners do not wish to buy.Thank you

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