ianparkin 11 #1 Posted October 16, 2019 Out of the blue a letter has arrived from my freeholder (SDBF) suggesting that they want to sell the freehold. they quote a total price of £2500 plus my legal fees presumably. My ground rent is £6.20 and it has 840 years left Is it worth me buying it? Share this post Link to post Share on other sites Share this content via...
lil-minx92 10 #2 Posted October 16, 2019 Its always worth buying- but at the right price Share this post Link to post Share on other sites Share this content via...
geared 298 #3 Posted October 16, 2019 Sounds pretty steep, would imagine you'll pay half that if you just get a solicitor and follow the normal legal process. I assume you've been in the property for the required 2 years? Share this post Link to post Share on other sites Share this content via...
ianparkin 11 #4 Posted October 16, 2019 31 years now Share this post Link to post Share on other sites Share this content via...
geared 298 #5 Posted October 16, 2019 Go straight to a solicitor and have them sort it the normal way then, sounds like they've made you a steep offer on the off-chance you'll accept. Share this post Link to post Share on other sites Share this content via...
ianparkin 11 #6 Posted October 16, 2019 But lets say i'm going to stay here another 25 years tops thats only £ 150 ish @£6 per year This sum cant go up AFAIK Theres no covenents to say what i can and cant do The house is in a conservation area Why should I buy it and Why would anyone else want to buy the freehold ? its a long investment 800+ years Share this post Link to post Share on other sites Share this content via...
ttparsons 10 #7 Posted October 17, 2019 I agree with what has been said above. However, if you were thinking of selling, the question is how much would having the freehold increase the value of your house. Admittedly that's a bit of an unknown, but some people are wary of leasehold. Share this post Link to post Share on other sites Share this content via...
sheffbag 224 #8 Posted October 17, 2019 thats about 400 years ground rent. We had the similar situation with a very low ground rent and the lease holder offered it for us to buy. They want to get rid as its more hassle for them to process your payment. If its including all legal fees then i would go back with a lower offer. £1000 now is a lot better than £6.20 a year. Make sure you get all your forms sorted and speak to land registry if you are going to do it yourself, they can guide you through everything. Going through solicitor will only cost more. Share this post Link to post Share on other sites Share this content via...
geared 298 #9 Posted October 17, 2019 (edited) 3 hours ago, ttparsons said: I agree with what has been said above. However, if you were thinking of selling, the question is how much would having the freehold increase the value of your house. Admittedly that's a bit of an unknown, but some people are wary of leasehold. This exactly, many people won't even consider a leasehold place, or if they do will knock some off the value to allow for the purchase. 1 hour ago, sheffbag said: thats about 400 years ground rent. We had the similar situation with a very low ground rent and the lease holder offered it for us to buy. They want to get rid as its more hassle for them to process your payment. If its including all legal fees then i would go back with a lower offer. £1000 now is a lot better than £6.20 a year. Make sure you get all your forms sorted and speak to land registry if you are going to do it yourself, they can guide you through everything. Going through solicitor will only cost more. For piece of mind it's best to get a solicitor to do it all, it's not something you really wanna mess up. Edited October 17, 2019 by geared Share this post Link to post Share on other sites Share this content via...
topflat29 10 #10 Posted October 17, 2019 Make an offer at 25 x the annual ground rent = £155 + £300 legal expenses. Say £500 total. Share this post Link to post Share on other sites Share this content via...
ianparkin 11 #11 Posted October 17, 2019 They break it down into 3 bits £1324 for the sale price £ 600 legal charges £591.60 SDBF proffesional and admin fees total of £2515.60 so they are asking for 213 years of GR this is Sheffield Diocesan Board of finance Share this post Link to post Share on other sites Share this content via...
Jeffrey Shaw 88 #12 Posted October 17, 2019 And SDBF is a charity! On the other hand, the law on charities demands that they obtain a Chartered Surveyor's advice (or same from a professional) as to the sale terms. Even so: a. the sale price should be roughly as per post #10; b. the solicitors that it uses are a bit expensive at £600; and c. the £591.60 cannot cover anything more than one-only valuation fee: see s.9(4) of the Leasehold Reform Act 1967. Share this post Link to post Share on other sites Share this content via...