Valuing a property - how best to help?

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    Valuing a property - how best to help?

    We're considering making an offer to buy out the freeholder of our building, but am not sure of the best way to get the required professional help with doing so.
    It is a fairly complex set up - building has restaurant below and two flats above. Building is in disrepair as freeholder not spent money on it. Flats both on long leases. Leaseholders get on and may well look to do this process together.
    Restaurant below is on a 10 year lease and brings in a fairly decent income for the freeholder, though they never seem to have any money...
    Relationship between freeholder and leaseholders is not good.
    This year FH appointed a managing agent who has just sent through a 10 year capex plan, with significant spend needed, especially in the first 5 years, due to neglect of old building. This is as we leaseholders expected and covers the areas we've complained about for years. However, costs are higher than they need to be as going through a MA with all sorts of 'fees' and inflated areas.
    The lease terms are such that the FH has to contribute a significant amount to the repair and upkeep of the building, which they have never wanted to do.
    Now feels a good time to make a offer - take it off their hands and they don't have to find the money for repairs. We then would have to cover all of it, but could manage ourselves without the middle men taking numerous cuts, and have the confidence it's been done correctly.
    How do we go about getting a valuation to buy the building, ideally without spending a fortune as not at all sure how it will be received?

    #2
    I'd avoid this like the plague. You'll become accidental commercial landlords with all the complications.
    If you're serious about going ahead you'll need a specialist surveyor to value it but first step should be ask the freeholder how much he wants for it. You may be surprised.

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      #3
      That's an interesting approach (just asking) - we may well do that.
      I do understand your point about the commercial landlord thing, but it is something we've looked at a few times over the years when looking at properties. I've also previously been a commercial tenant and had to take action against a hopeless agent, mobilising the other tenants so am not completely green to it.

      Comment


        #4
        Commercial properties ( local shops) are valued on the number of years rental income and you can ask a commercial estate agent what is the number of years for your street. For a shop building in rundown condition, the building may be priced at 10 times annual rental income.

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