Sale of freehold rev. to lessees- at what price?

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    Sale of freehold rev. to lessees- at what price?

    I own the freehold to a terraced house recently converted into three flats which were sold with new 99 year leases dating from June 2007. I now wish to sell the freehold and plan to offer it to the three flat owners.

    The value of the flats at todays prices are approximately £300,000, £340,000 and £400,000.

    The ground rent for each is £250 per annum rising to £500 then £750 after 33 then 66 years.

    I would like to know if there is a formula to calculate the right price and what would be a fair price to offer it to the leaseholders.

    Many thanks if you can help.

    #2
    1. But do they want to buy it? What if they don't agree?

    2. Best procedure is first decide if, in default, you would:
    a. sell elsewhere; or
    b. retain.

    3. If 2a, find an outside buyer X (e.g. at auction or via a dedicated website such as Ground Rent Brokers- details on request) and a price which X is prepared to pay. THEN serve Notice on the three lessees (under s.5 of LTA 1987) to give them statutory first refusal.

    4. If 2b, offer it informally to lessees.
    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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