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Sale Of Freehold

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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?

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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?

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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.

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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

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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.

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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.

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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 by geared

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Make an offer at 25 x the annual ground rent = £155 + £300 legal expenses. Say £500  total.

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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

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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.

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