Landlord question - Freehold Reversion / Ground Rent

[Fizz]

My brother and I have recently inherited 2 plots of land for which we own the Freehold for 949 years! On this land are 32 properties (all maisonettes - so 16 buildings in total) for which we get £4.00 per year per property (or not as the case may be!).

We understand we are also supposed to insure the plots of land but are not able to do this due to cost. The latest quotes we have received are in the £1000s.

We didn't aks for and really don't want these plots of land. We do not have the finances to fund them so want to try and give / sell them to the leaseholders. We are certainly not looking to make any money out of them but at the same time, cannot afford to spend a great deal to sell them either.

I've read that we can send out Section V notices but cannot find a template on the web for this. Are we being too ambitious in thinking we can do this ourselves? My understanding is that if no tenants respond in 4 months, we can then put the ground rents up for sale.

Appreciate any help or advice from the knowledgeable people of this forum!

[leaseholdanswers]

My brother and I have recently inherited 2 plots of land for which we own the Freehold for 949 years! On this land are 32 properties (all maisonettes - so 16 buildings in total) for which we get £4.00 per year per property (or not as the case may be!).

We understand we are also supposed to insure the plots of land but are not able to do this due to cost. The latest quotes we have received are in the £1000s.

We didn't aks for and really don't want these plots of land. We do not have the finances to fund them so want to try and give / sell them to the leaseholders. We are certainly not looking to make any money out of them but at the same time, cannot afford to spend a great deal to sell them either.

I've read that we can send out Section V notices but cannot find a template on the web for this. Are we being too ambitious in thinking we can do this ourselves? My understanding is that if no tenants respond in 4 months, we can then put the ground rents up for sale.

Appreciate any help or advice from the knowledgeable people of this forum!

Very simply if they require you to insure and you do not then if a claim arises you could have to say good bye to your own homes earnings etc. The liability exists like it or not I am afraid.

Even if you intend to sell these that liability is there.

As th freehold may be worth something in terms of rental income, as it ma be subject to review, or if the leases are relatively short, there is a value for the right to sell lease extensions.

My advice is not to sell yourself short, and spend a few £100 on advice and a valuation from a local chartered valuation surveyor. Check with the solicitor if a probate valuation was done and the value assessed.

The solicitor who dealt with the estate should have given you a copy of the freehold title and the office copy entries which list the number and length of each lease.

Assuming they are all granted about the same time time and if less than 90 years unexpired, then there is a value to them.

Assuming the ground rent has not been billed you can invoice, but ask here how to do so,

32 x £4 x 6 years = £768 which should pay for basic advice and valuation.

You can purchase a notice, but for the risk of getting it wrong use a solicitor.

AND be aware that these sound like separate buildings which could therefore be capable of enfranchisement ( leaseholders acquire the freehold) in 16 different transactions.

[Fizz]

Thanks for your reply.

These freeholds were in the hands of a solicitors who billed the tenants annually but did not chase for any payment but charged for this privilege!

We have just settled a bill with them for just under 1k but don't want to carry on in this manner.

I have seen adverts from companies buying ground rents. The lease on all the land is 949 years with no provision in the lease for us to be able to change the rent from £4. There are 2 leaseholders in each building (one up / one down maisonettes) so it does seem complicated.

As for insurance, we will have to take a chance. We were quoted 2.5k to get this land insured which is just way out of our league.

I'll contact a couple of chartered valuation surveyors to see what they think. Thanks for your help.