Purchase / sale of freehold

[PDW1964]

Hi everyone.
I currently own 1 leasehold flat in a converted house where there are a total of 3 flats. About 6 years ago, the freeholder wanted to sell the FH and offered it to all leaseholders for £4500. Myself and one of the other leaseholders were interested but the third wasn't and declined. Myself and the other interested freeholder then bought 50% each of the freehold for £2250. The third freeholder has now approached me and said he now wants to buy his 1/3 share of the freehold. My questions are

1 Are we legally obliged to sell it to him?
2 What is the best way to value it and what would happen if no agreement could be reached?

Thank you



Dan

[sgclacy]

1) No. The concept of compulsory purchasing a fractional interest is not provided in the Act

2) Not applicable

However unless there is reversionary value building up it may be a good idea to have him join, if he/she feels an outsider it may make the management more difficult

[ram]

If you do decide to have the third join in as a freeholder, then consider asking the same price as you two paid. e.g. £ 2250.

Before you say that is too much, then why should the third "freeholder" pay less than you paid ?

The freeholder needs cash in the bank to run the place, accountants, companies house fees if you have formed a company with shareholders.

[Tipper]

I'd be asking for the full freehold cost, £4500 + costs/fees, etc.

BTW have you extended your leases yet?If not then you should give yourselves 999 year leases.