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Buying freehold

(9 Posts)
lout3380 Fri 10-Mar-17 17:13:38

Can someone please give me some advice?
My freeholder has recently gone bankrupt, and I am about to start negotiations for purchasing the freehold.
I have absolutely no idea what the cost in total is going to be, I have done various searches online but it is all so confusing! And I've even been quoted £483 just to get it valued!
Please can anyone help??????

JoJoSM2 Sat 11-Mar-17 00:31:16

Is there a management company? Havd you spoken to other leaseholders in the building? I expect that you'll need a property lawyer to help you.

lout3380 Sat 11-Mar-17 08:10:53

Myself and the other leaseholder were issued a section 5b which meant the freehold will go to auction. After alot of discussion with the freeholders debt collecting company it has now been agreed that the freehold can be taken off of auction and we can now begin negotiations. Firstly, we need to get it valued but I cannot believe how hard it to find someone in our area to do this! I spoke to somebody yesterday and have been quoted £483 per flat! The other leaseholder is being a pain, she lives about 400 miles away and has become very difficult to contact, she wants to go 50/50 but is struggling to find the finances especially with not knowing how much it could even cost in the end. I'm happy to purchase the freehold but will need her consent as she will have to show 1% interest. But again, she is taking so long to make her mind up. I have looked at online calculator but how trusted can they be? Or an online company called Pro Leagle look quite good.

lout3380 Sat 11-Mar-17 08:12:26

yes I do have a solicitor too

tryinghardnottocry Sat 11-Mar-17 18:41:47

If the lease is over 80 years the freehold will be worth approx 20 times the annual rent PLUS

85 yrs 1.6% of the value of the flat
95 yrs 1.0% of the value of the flat
105 yrs 0.6% of the value of the fat
115 yrs 0.4% of the value of the flat

Above 80 years you should be able to be quite confident on on-line calculators

below 80 years its more difficult and you need to take professional advice

In a two flat split both need to agree to purchase in your case I would gain your neighbours consent and agree that you purchase on the understanding that when she gets her finances in order you will grant her a lease extentsion or allow her to become joint owner on payment of the cost you had to pay on her behalf plus an additional sum for getting it all sorted on her behalf perhaps £500 to cover your time

lout3380 Sun 12-Mar-17 07:37:18

My flat has 86 years remaining and the flat below has 122 years remaining. We both pay £30 ground rent per year. But I have also read that it depends what part of the country we are in too?
Thank you so much for your reply.

lout3380 Tue 14-Mar-17 05:10:35

Hello again, is there anyway I can work out a more accurate figure with the details I have left here?
Flat 1 value £100,000 86 years remaining £30 ground rent per year
Flat 2 value £97,000 122 years remaining £30 ground rent per year.
Any help is very much appreciated, thank you.

nopunintended11 Wed 15-Mar-17 22:40:17

Similar to your figures, I paid ground rent of £30 and had 89 years left. I asked the landlord if they were interested in selling at the time of purchasing the property. They said yes at £2500 for a share of the freehold and my neighbour bought the other half. I can't actually recall why it wasn't valued -- I think because the price was reasonable and I had no issue with the price.

I paid £150 with the conveyancing solicitors who had completed the mortgage.

We are now in the process of extending the lease to 999 years and that is costing £600 each.

nopunintended11 Wed 15-Mar-17 22:42:12

Oh and my flat was valued at £240 K at the time of purchase and now is £360 K.

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