Valuing a property - how best to help?

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

    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.

    Comment


      #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.

        Comment

        Latest Activity

        Collapse

        • Reply to Old managing agents accounts
          by jazzythumper
          would this be a good starting point?

          https://www.lease-advice.org/faq/how...eing-used-for/...
          25-05-2022, 15:37 PM
        • Old managing agents accounts
          by jazzythumper
          Since obtaining the RTM and changing the managing agent, we have never been given full accounts / receipts for the previous year(s). We believe that as the old freeholder and leaser holder of one of the flats were represented by the same solicitor that prior to the sale of the freehold, we were subsidising...
          20-05-2022, 11:21 AM
        • Reply to Old managing agents accounts
          by jazzythumper
          As in a simple application to the old managing agent Or freeholder? Which one?

          To provide all accounts and payments based on the fact that we disagree with the charges? How far back can we go? And does having paid the service charges mean we have agreed to these?

          Thanks for...
          25-05-2022, 15:31 PM
        • Reply to Freehold confusion
          by Section20z
          It's never advisable , it can cause serious issues if you have a claim affecting communal areas. For buildings insurance the whole property should be covered and the cost split between the two flats.
          The only problem with an absent freeholder is that when selling the flat a pernickity solicitor...
          25-05-2022, 10:02 AM
        • Reply to Share of feehold/shared service charges?
          by Stu1020
          eagle2,

          Thank you for the response.
          25-05-2022, 09:40 AM
        • Reply to Freehold confusion
          by AndrewDod
          There is no cast iron rule that the freehold "share" has to be transferred with any sale. You may need to purchase it from the friend (or his estate)....
          25-05-2022, 09:22 AM
        • Share of feehold/shared service charges?
          by Stu1020
          Hi there,

          I'm new to the forum and looking for advice on a sticky freehold situation.

          I own a two-bed flat in a converted building with two one-beds. The lease states that a fair proportion is payable towards the service charge. However, there has been a running agreement of...
          20-05-2022, 11:39 AM
        • Reply to Share of feehold/shared service charges?
          by eagle2
          I suggest that you ask the other 2 leaseholders to explain why they consider that the current allocation is fair. The freeholder has the right to review the allocation from time to time. Unfortunately, a "fair proportion" means that several alternatives would be considered reasonable to a...
          25-05-2022, 06:27 AM
        • RTM Hand Over Issues
          by martin15
          RTM handing over issues

          Our RTM companies comprise 4 blocks of 6 identical two bedroom flats and each block is registered at Companies House as a separate company.
          Following the acquisition date, it was discovered the former directors ignored legal advice and changed property management companies...
          23-05-2022, 19:36 PM
        • Reply to RTM Hand Over Issues
          by eagle2
          You appear to have a claim against the freeholder, not the individual companies, who are acting as agent for the freeholder. A Tribunal does not have the jurisdiction to deal with monies which should be handed over, it is a matter for the courts,
          25-05-2022, 06:16 AM
        Working...
        X