Calculating Value Of Selling Freehold With 851 Years Remaining

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    Calculating Value Of Selling Freehold With 851 Years Remaining

    I am new to this site so apologies if this is posted in the wrong place.

    I have been searching the web on how to value the freehold I own but have been unable to make any sense of the calculators.

    It is a block of four flats, each with 851 years remaining on the lease and ground rent is only £10 per annum with no right to increase.

    If anyone could help I would appreciate it.

    #2
    The calculators are not for calculating the value of the freehold- so don't feel daft

    Assuming no redevelopment rights or hope vlaue or other income streams it's maybe £500 to a £1000. Some investors will factor in insurance commissions fees and management fees or profits if they carry out repair work.

    But as ground rent investment? Pass.
    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.

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      #3
      Originally posted by georginanewt View Post
      It is a block of four flats, each with 851 years remaining on the lease and ground rent is only £10 per annum with no right to increase.
      There are two aspects in leases of that length: ground rent and yield.

      For an enfranchisement purchase of this length 10 x ground rent is a starting figure.

      If the freehold was auctioned, then a yield of between 3% and 6% pa tends to be the guide price.

      so, unless there is extra money to be made from commissions and the like, the value will be pretty low.
      On some things I am very knowledgeable, on other things I am stupid. Trouble is, sometimes I discover that the former is the latter or vice versa, and I don't know this until later - maybe even much later. Because of the number of posts I have done, I am now a Senior Member. However, read anything I write with the above in mind.

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        #4
        Originally posted by georginanewt View Post
        I am new to this site so apologies if this is posted in the wrong place.

        I have been searching the web on how to value the freehold I own but have been unable to make any sense of the calculators.

        It is a block of four flats, each with 851 years remaining on the lease and ground rent is only £10 per annum with no right to increase.

        If anyone could help I would appreciate it.
        Your freehold is a similar situation to the leasehold houses with over 900 years lease with fixed ground rent around 10pds -50 pds per year .

        Recent LVT judgements to decide the cost of buying the freehold title have been decided on 14 x annual ground rent.

        So for 4 flats at 10 pds GR per year, the value of the freehold comes to 560 pds.

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