purchase of loft space

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    purchase of loft space

    Dear Forum

    Hopefully someone here can offer me some advice. I am in the process of buying a top floor maisonette with a long lease and share of freehold. The loft space is shared with the flat downstairs. The cofreeholder has in principle agreed to sell me his share and allow me to convert the loft, and as seems normal in these matters, has asked for 50% of the increase in value, minus the cost of the work. Plus I would have to pay all legal costs

    Unfortunately I would never be able to afford those costs. The flat is in a fairly expensive area, and a similar property a few doors down which has had a loft conversion done achieved quite a high price, so depending on exactly how I would convert the loft, I have calculated the amount I would have to pay to the cofreeholder would be about 40k (1 bed, 1 bath), going up to 70k for a larger conversion, (2 beds, 1 bath)

    I appreciate there are no hard and fast rules in these matters, and in the end it is down to negotiation and circumstances.

    Does anyone have any experience in these matters. I guess what Im asking is whether or not people have accepted much lower figures regardless of the valuations. In some ways it would be better to make some money and allow the work to go ahead, rather than refusing and making nothing

    Kind regards

    Steve

    #2
    Depends on the person. They have a comodity that you wish to capitalise and gain value from - whether it be now if you're developing the flat for resale or later when you move to a new home.

    Make an offer and see what happens.

    Bear in mind that you're looking to gain £80k or £140k (based upon your figures) from their property.
    There is always scope for misinterpretation.

    If my posts can be interpreted in two ways, one that makes you feel angry and one that doesn't, I meant the latter.

    Everyday is an opportunity to learn something new.

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      #3
      Strikes me that co- freeholder as you put it knows exactly what he it doing. LOL



      Freedom at the point of zero............

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        #4
        im sure the co freeholder has taken some advice, and if i were here in his position i would be asking for exactly the same!

        the trouble is i only have limited funds, so even though i stand to make money in the future if and when i sell it, i do not have that money at this time and could only offer what money i do have minus the cost of the works

        i guess there is nothing to lose by making an offer. 10k is about all i would have, i know this seems small compared to the figures quoted above, but there is no way of me borrowing anymore money, or finding more money in the future. in some ways i think making 10k is better than making nothing at all. If i decide not to go ahead with the purchase, the next buyer may not even want to extend into the loft, and the co freeholder will have lost an opportunity to make some easy money

        i would only hope that he sees it that way as well!

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          #5
          the usual rule of thumb is a third of the planning gain a lot less than the other party is asking for. cheeky monkey!

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            #6
            If you can agree a figure higher than £10k, use that money as a part payment and agree to "borrow" the rest against the value of the flat when it is eventually re-sold.

            There will be some additional legal costs, but it may allow you to proceed with the development in a spirit of co-operation with the other freeholder having something to look forward to.

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