Enfranchising underleasehold house (one reversioner missing)

[markey]

My house is leasehold with over 900 years left on its sublease. The freehold and leasehold are owned by 2 different companies and cover over 70 houses (located my street and the next). I pay a ground rent of £2.75 (twice yearly).

I am currently planning on buying both reversions on my property. I first thought of doing so 2 years ago, but due to personal issues had to but it on hold until now. I have recently requested a quote from both the freeholder and the leaseholder - for the leasehold reversion via the leaseholder's agent. The freeholder came back with a quote of £550 (inclusive of their costs and I would just have to pay for the title to transferred into my name). I got their quote after just a week. However, one and a half months later I still have received no reply from the leaseholder - their agent says the leaseholder lives out of the country and they've passed on the request.

My questions (for which I'd be very grateful for any answers to) are: -

1) Does £550 seem abit pricey as I thought a more reasonable value would be £425-£450?

2) They say they'll prepare the legal documentation and send it out for my signature (One of my neighbours has done it this way). Are there any pitfalls in doing it through their solicitors? I mean does it really matter as long as the freehold ends up in my name?

3) If I only bought the freehold and not the leasehold,
(i) Am I still legally bounded by any leasehold covenants?
(ii) Would the leasehold on my property become worthless to the leasehold reversioner?

[jeffrey]

1. Don't know, but you should be looking at a single (tripartite) transaction to acquire both reversions in one go.
2. No, you really should instruct your own solicitor in a messy case like this.
3. Acquiring one reversion only is pointless. You remain a leaseholder, the covenants remain in operation, and you pay two lots of HMLR fees.

[markey]

Jeffrey thanks for your comments. Responding to your answers: -

1. I thought a price of £425 - £450 for the freehold is reasonable based on a price of (10 - 20) * £5.50 on the yearly ground rent and £300+ covering their costs.

2. Is this a messy situation due to slow/lack of response from leaseholder or for the fact of acquiring both reversions?

3. I remain a leaseholder even though I acquire the freehold?
If I Own the freehold then who could enforce any covenants?

[jeffrey]

1. Yes.
2. Messy due to potential for conflict of interest and the split of reversions.
3. If you (as underlessee) buy ONLY the freehold reversion, the intermediate leasehold reversioner (X) can still enforce underlease covenants against you. X would remain lessor of the underlease. That's why you need to acquire both reverions.

[markey]

Jeffrey, thanks for the clarification.

I have now made an offer to both parties so will wait afew weeks for a response before I proceed - sent offer direct to Leaseholder cos not sure their agent is informing them of my interest in buying their reversion on my house.