Value of Freehold

[freeholder]

I am trying to get a ballpark figure for the value of a freehold, before paying out for a surveyor to produce something more accurate.
I own the freehold of a pair of purpose built maisonettes, one leaseholder would like to purchase it and I am inclined to sell at the right price.
The upstairs property is worth about 400k with 95 years left of a 125 year leasehold, ground rent is £250 pa rising to £400 in 3 years, then £400 for 33 years, then £600 for the remaining 59 years.
The downstairs is worth about 350k with 69 years left. Ground rent is 50p per year.
The leaseholder is looking to purchase the downstairs property too and that looks to be well in hand.
Any suggestions?
Thanks.

[James 2009]

£30k-£40k (with the possibility that the range is is not quite wide enough to cover all possibilities) is my very quick fag packet estimate.

Where is it and does it have development potential?

[James 2009]

The above was an estimate of the premium were they to collectively enfranchsie.

[Tipper]

There is an online calculator produced by a forum member who worked it out based on the formal method. Don't know how accurate it is though.

http://www.freeholdcalculator.com/calc.php

[sgclacy]

The above was an estimate of the premium were they to collectively enfranchsie.

the market value would be around 80 % of that figure

[jeffrey]

Also see Leasehold Advisory Service website here: http://www.lease-advice.org/

[freeholder]

Freehold value reply

Thanks for the reploy James.
The property is in White City and already has the loft converted so could only possibly be developed by extending into the garden for a larger kitchen. I don't think that many of the other nearby properties have done this.

[James 2009]

Thanks for the reploy James.
The property is in White City and already has the loft converted so could only possibly be developed by extending into the garden for a larger kitchen. I don't think that many of the other nearby properties have done this.

I hope I have not got your hopes up unnecessarily... development potential can add to the premium chargable, but equally the abilty to do normal extensions (loft conversion, kitchen extension etc) is not really valuable. Yes, it is better to have a property that you can extend, but having a loft void that could cost £30k-£40k to extend into and add £30k-£40k in value is not actually very valuable, if at all.

The point I was emphasizing was the importance (if you want to be sure of the correct value) of taking proper valuation advice. For all the information you get on here, someone who reads the leases and visits the property will give a better service!

[funkster]

There is an online calculator produced by a forum member who worked it out based on the formal method. Don't know how accurate it is though.

http://www.freeholdcalculator.com/calc.php

I can vouch for the fact that, based on my own experience of using this calculator and then having a professional estimate, it gives a very good idea.

[sgclacy]

I can vouch for the fact that, based on my own experience of using this calculator and then having a professional estimate, it gives a very good idea.

I am surprised that you do get an accurate figure. You advise in another thread that the ground rent of the freehold you are buying rises. The calculator you refer to has no provision for a rising rent.

Have a look at this thread I posted a while back. You will be able to caculate the value of the stream of income more accuratly. The ground rent in your case doubles every 25 years

http://www.landlordzone.co.uk/forums...ad.php?t=11083