Disposing of freehold interests in leasehold properties

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

    Disposing of freehold interests in leasehold properties

    Hi, looking for some advice please. I have inherited the freehold interest in 18 properties in sunderland, uk. They are in the majority of leasehold properties that are houses/ maisonette bungalow style 2 bedroom houses, and I suspect until I look in detail at all of them, all subject to 999 yr leases that began in the 1950s. My grandfather built them postwar and we understand offerrd them to family and friends for nominal ground rents of £7-£10 / yr that remain today. No service charges or the like as far as I can see. Whilst I see the value of his gesture at the time, many have been onsold over the years to buyers with no familial or relational connection.... I feel as if their original purpose of affordable homes is no longer their purpose, plus I am assuming I will also inherit some unwanted costs and risks. Can I sell my freehold interest, and the properties if i choose? Do i have any rights as the freeholder of these leasehold properties? Can i realise any capital benefits by selling them? I understand there is something to do with first right of refusal to the tenants but does that apply to properties that are houses/ single dwellings, as opposed to a building of flats? Thanks for your advice in advance.

    #2
    Collecting £7-£10 annual ground rent is not profitable business when the minimum hourly wage is around £8.

    You could try selling the freehold title of a house on 999 years lease for say £600 to the leaseholder.

    Put in offer letter to leaseholder , "The benefit of buying the freehold title includes no ground rent to pay, no landlord registration charges when selling the property and it could increase the market value by £2000-£3000 due to more buyers for freehold houses.

    Comment

    Latest Activity

    Collapse

    • Reply to AGM cancelled.
      by Grumio
      The articles state they must declare any kind of interest directly or indirectly, problem is it’s kind of hard to deal with people who keep messing everyone around, calling an AGM and then cancelling it for eg. We have called meetings with them in the past and they don’t turn up. How can you deal...
      26-01-2022, 14:35 PM
    • AGM cancelled.
      by Grumio
      Is this legal?

      A bit of background, we currently have three directors, we are allowed to have up to a maximum of eight directors according to the articles of association. We are all leaseholders. Last summer the three directors decided to hire a managing agent who is now in charge of the...
      26-01-2022, 00:46 AM
    • Reply to AGM cancelled.
      by eagle2
      Any meeting which you decide to hold will be an informal meeting only, you do need to follow the correct procedure if you wish to hold a valid meeting,

      The Articles should state whether or not directors need to declare conflicts of interest and whether or not they are entitled to vote on...
      26-01-2022, 13:30 PM
    • Reply to AGM cancelled.
      by Grumio
      It is both a managing agent and a residence Association. But we want to go back to managing the block ourselves.

      Thanks for the reply, yes invitations have been sent to all our members. And I agree, they should not cancel the AGM, especially when they haven’t got a plausible reason to...
      26-01-2022, 12:12 PM
    • Reply to Lease extension triggers doubling ground rent change
      by sgclacy
      Doubling every 25 years is simply a guess as to what inflation may be, if inflation of the current levels ( about 6% ) was to continue the real value of the rent would fall by 77% and doubling would not address the enormous damage done by inflation. However, if inflation was less than 2.81% per annum...
      26-01-2022, 11:57 AM
    • Reply to Lease extension triggers doubling ground rent change
      by Section20z
      You are clearly using the informal route and can thus negotiate whatever terms you like.
      freeholder will want to retain some ground rent but avoid the doubling clause, maybe suggest small fixed rises every ten years....
      26-01-2022, 10:40 AM
    • Service charges according to floorspace vs lease stipulation
      by Santa Fe
      Hello. I own a flat in a block of four. The new owner of the smallest flat is disputing their contribution to service charges based on floor size. All four flats have historically paid 25% each, but of the four leases only mine states that I pay 25%. I have spoken with a solicitor about this and he...
      24-01-2022, 22:55 PM
    • Reply to Service charges according to floorspace vs lease stipulation
      by Section20z
      Quite, there is also the question here of who the actual freeholder is and whether the whole thing is any concern of the OP who only ever need pay 25% !!...
      26-01-2022, 10:25 AM
    • Reply to AGM cancelled.
      by eagle2
      Yes, I am confused too. If there is a Residents Association, it is required to comply with its constitution.

      There seems to be a Company involved as well. Whether or not it is required to hold an AGM depends on its Articles, AGMs can be cancelled for various reasons, lockdowns are an example,...
      26-01-2022, 10:19 AM
    • Reply to Service charges according to floorspace vs lease stipulation
      by eagle2
      I think that we have found 3 possible alternatives already and no doubt we could find more, As Section20z says it is very rare for a court or a tribunal to intervene, The lease appears to allow the freeholder (?) to decide what is fair and reasonable and it has decided that an equal share is reasonable,...
      26-01-2022, 10:01 AM
    Working...
    X