How can I calculate the value of a freehold share?

[treacletart]

DH and I are freeholders of the entire building we live in. There is a basement flat below us owned by a leaseholder who does not have a share of the freehold. Is there a sensible way of calaculating the price were we to agree to sell the leaseholder a share?

Like anything else, it's down to negotiation. It is complicated and depends how long remaining years on lease are (more than 80 and I don't think you have much compensation at all) but basically you ask high, leaseholder offers low and you try to reach an agreement without resorting to solicitors/surveyors/leasehold valuation tribunal. If you want to sell, be reasonable, if not, be stubborn git. The leaseholder has the right to buy after two years' ownership of lease but you have the right to charge all expenses to him/her.

Thanks lala - guess i just wondered if there was a guideline percentage of property value or somesuch. My understanding is that as he only occupies a third of the property, he cannot force us to sell it to him - is that right?

Yes, depends if he is responsible for only third of bills or whether shared equally - has to be at least 50% of leaseholders or 50% of the freehold iyswim.

We have just bought a share of the freehold of the property we live in. The way it worked was that the freeholders got a specialist survey company to come and do the calculation. They gave a price based on the value of the property, the length of the lease etc. etc. It was quite a complicated calculation.

The price seemed reasonable to both sides, so we paid up. We also paid for the survey company and the legal fees. The other freeholders were thrilled to get the cash, and we were pleased to have a share of freehold: everyone happy.

There is a good guide to it which we used:

www.amazon.co.uk/Survivors-Guide-Buying-Freehold-Enfranchisement/dp/1905261101/ref=sr_1_1?ie=UTF8&s= books&qid=1226091719&sr=1-1