Selling the freehold

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    Selling the freehold

    Hi All,

    Bit of a first timer here but hoping that someone may be able to help. My mother recently became quite seriously ill, she is currently a landlord and freeholder of a small block of flats and a shop. Due to the illness she is keen to sell the shop and the freehold to someone who is interested. As a result she has asked me to try and find out the value of the freehold.

    Would anyone be able to help or provide some advice?

    There are 4 flats in the building. Each worth around 130000 each. The leases on the flat are 960 years. The ground rent is set for the term of the lease.

    I've tried to use a few websites that outline suggested ways to calculate the worth of the freehold but they appear to be quite complicated.

    If anyone could provide me with advice or a link to a site that could make this a little more straightforward for me I would be extremely grateful!

    #2
    The value of being able to get possession f the flats in 960 yaers is effectively nil so the only value in the flats is the ability to collect the ground rent say 12-15 times the aggregate of the ground rents - so vast bulk of the value will be in the shop.
    RICHARD WEBSTER

    As a conveyancing solicitor I believe the information given in the post to be useful (provided it relates to property in England & Wales) but I accept no liability except to fee-paying clients.

    Comment


      #3
      Thanks for the speedy response Richard - how would i work out the aggregate of the ground rents - is thethere a standard calculation?

      Comment


        #4
        Originally posted by Helbycity View Post
        is thethere a standard calculation?
        Just for information.
        "OOP north", 6 flats, victorian house. 900 year lease left ,
        Ground rent is £ 14 per year per flat.

        so 14 x 6 x (12 ) = £ 1008
        or 14 x6 x ( 15 ) = £ 1260

        Others may be more if a "quick buck" for nothing is required.

        R.a.M.

        Comment


          #5
          Just for information.
          "OOP north", 6 flats, victorian house. 900 year lease left ,
          Ground rent is £ 14 per year per flat.

          so 14 x 6 x (12 ) = £ 1008
          or 14 x6 x ( 15 ) = £ 1260

          Others may be more if a "quick buck" for nothing is required.

          R.a.M.
          I suspect the maths would be the same in deep southern places like Southampton!
          RICHARD WEBSTER

          As a conveyancing solicitor I believe the information given in the post to be useful (provided it relates to property in England & Wales) but I accept no liability except to fee-paying clients.

          Comment


            #6
            Thanks Richard - that is really helpful. I am sure it is the same down here and you have really clarified everything for me!

            xhxh

            Comment


              #7
              Well the long leaseholders may have the right to first refusal, ie you must offer them the freehold first. Buildings with commercial elements can be exempt.

              I would suggest that you find a local chartered surveyor firm who deals with investments sales of mixed premises, to advise you on your obligation above, the value for the investment, and to deal with the sale. Go to RICS.org and contact them for a list of names.

              As it is to be sold if you have a local solicitor ready to deal with this ( and if the worst happens - sorry- or she needs to be left to rest and get better, a power of attorney) they will know such firms and can introduce you.
              Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

              Comment

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