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

[rdt4901]

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.

[jeffrey]

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.