Collective enfranchisement-79 yrs. unexpired- cost?

  • Filter
  • Time
  • Show
Clear All
new posts

    Collective enfranchisement-79 yrs. unexpired- cost?

    I am a long leaseholder of a flat which is one of a block of four. the freeholder has indicated in the past that he is willing to sell freehold. another leaseholder agreed a figure 2 yrs ago but it never went ahead. I have approached other leaseholders and 2 have agreed to try to purchase freehold with me. if freeholder is still willing, we would like to know how much to offer. we are hoping to avoid LVT route and associated costs.
    could someone please explain the calculation for me? please show calculation in case any variables need adjusting (eg. current market value)
    many thanks.

    lease is 99 yrs from dec 1987. ground rent is £50 first 33yrs, £100 next 33yrs and £200 last 33 yrs. I assume other flats are same. market value of each flat is about £75000. block is in kent.

    I will do you a nice 4 page spreadsheet where you can change the value of the variables (ie market price of freehold, relativity, discount rate for income and discount rate for deferment) and see instantly the result. I will do it for £10 with the chq made payable to "Children in Need". Send me a personal e-mail and I will show you the sort of thing you can expect for the money.

    The value of the freehold if you went under the Act would be around £10,000 assuming Cadogan and Sportilli applied. If there is a sucessful appeal the value could drop back to £8,000 if 6% for the deferemnt was used


      sgclacey, thanks for the valuation. it seems a lot higher than we anticipated, based on other limited info we could find. can you briefly explain how you calculated it please .[ I am not sure the spreadsheet would be of use if we dont know how to use it].



        The ground rent is £200 per annum in total. This when capitilised at 7.5% assuming it may rise after 33 years ie in about 13 years time would be worth around £3,000.

        The discounted value of the reversion. The total value of teh flats is £300k. If this is discounted back at 5% this would give a figure of £6,355.

        There would be very little if any marriage value particularly as theproperties have only just gone below 80 years and are outside London.

        Add the two figures together and you £9,355


        Latest Activity


        • Reply to Freeholder/Agent Demanding Money for Repairs
          by eagle2
          It makes you wonder why any freeholder should comply with s20 at all. As you say, it can wait to see if any leaseholder challenges the costs. It does not even need to explain why it did not comply with s20, the only consideration appears to be whether or not the leaseholders suffered any financial prejudice,...
          23-10-2021, 06:34 AM
        • Freeholder/Agent Demanding Money for Repairs
          by SSLA91
          Hi all,

          Long time lurker of this forum and recent new member. Have always found the forum incredibly helpful so thank you! Have now got an issue with our freeholder that I could use some specific advice on (have tried searching for similar posts but to no avail).

          We have recently...
          20-10-2021, 20:28 PM
        • Section 20 notice
          by Starlane
          Hello I would welcome input on the following:
          Two roofs feed into a valley, the valley is in need of repair, this is a shared responsibility and therefore a shared cost. so how do we issue a section 20 notice when really we need the consent and agreement from two different buildings/landlords...
          22-10-2021, 19:09 PM
        • Reply to Section 20 notice
          by Starlane
          Hi Macromia thank you as always for your helpful and sensible input.. one building is saying one thing and another building the other, the usual chinese whispers so I took the bull by the horns and spoke to everyone and I am almost there apart from a Director who wants to do their own thing ( not being...
          22-10-2021, 20:57 PM
        • Share of freehold questions - confused
          by sixunforced
          Not sure if this is the right place for this query but anyway, I'm a first time buyer and have been searching for a property for like two years now (not continuously but on and off and obv covid halted my search for a while). I found a really nice 2 bedroom flat for under £320,000 in a block of around...
          18-11-2020, 21:19 PM
        • Reply to Share of freehold questions - confused
          by Starlane
          Agree thank you...
          22-10-2021, 20:52 PM
        • Reply to Section 20 notice
          by Macromia
          Assuming that the two freeholders have agreed that they will work together and share the costs, they jointly agree what needs to be communicated to the leaseholders and then each freeholder writes to the leaseholders in their building.
          22-10-2021, 20:16 PM
        • Freeholder threatening to cut water off
          by Disraeli-LLH
          I was hoping you would be able to help. We own a ground floor flat LLH(970 yrs remaining). The freeholder owns the house and lets the flat upstairs on an AST.

          The freeholder currently undertaking works including replumbing. We have been on a shared water supply and we connect through their...
          20-10-2021, 15:35 PM
        • Reply to Freeholder threatening to cut water off
          by Macromia
          This is possibly by far the most important consideration, in my opinion.
          If the OP's lease doesn't allow 'improvements' to be charged to service charges, the freeholder cannot require them to contribute anything towards the costs, and would therefore be something that they would have had no choice...
          22-10-2021, 20:08 PM
        • Reply to Freeholder/Agent Demanding Money for Repairs
          by Macromia

          Although when my freeholder applied for dispensation a while back (arguing that the proposed work had to be carried out as a matter of urgency) they were granted dispensation with the First Tier Tribunal commenting that the 2013 Supreme Court Case of Daejan versus Benson meant...
          22-10-2021, 19:51 PM