How to value a long leasehold

Pennywise

I'm just wondering if anyone has any experience of this situation.

I am currently renting a basement of someone's house - it's not as bad as it sounds as the house is on a slope so it's a basement from the front but ground floor at the back. I want to buy the basement, but understand that I can only buy a long leasehold, which is OK by me. Landlord is happy for me to buy the leasehold and we have agreed that the price will be what the valuer says!

My query is about its value. I think the value should actually be very low, certainly far lower than a comparable flat. The reasons are that the house's services, i.e. power, clean water and dirty water, are all passing through the basement, even to the extent that there are pipes across the ceiling and across at least two full walls, not boxed in and clearly visible, there are even meters and stop-taps in the basement. He will continue to require access for meter reading and maintenance. What I don't know is what sort of discounted value I should be looking for. I want to put a convincing argument to the valuer about these, and other, issues in the hope that a lower price can be negotiated.

I wonder if anyone has "been there and done that" and can share any experience or ideas?

EdInvestor

Is that legal under the planning/building regulations? I should check with the council first - you may find there needs to be some changes made.

[Deleted User]

I'd ask your Landlord to make some changes aabout that, I am not sure it is legal and it won't make it easier for you to sell in the future KWIM. I agree, check with your Council, also your solicitor should be able to advise you.

Pennywise

Thank you Edinvestor and Van1971, but the point is that I am not bothered by this situation. It does not detract from my use of the property and I have no real intention of selling the property for a few decades, nor do I regard it as an investment. It is not my residence, and never will be - I regard it simply as some "extra" space for myself and my family for a "home" office, kiddies play area, etc, as my actual "home" is far too small and can't be extended, but I can't afford to move to a bigger property and we don't really want to move anyway as we've spent years making our home as we want it. This basement is close to our home and is a very attractive alternative to the costs of moving up the property ladder.

What I am wanting is some pointers as to how to negotiate the value of the basement down as low as possible. If I start insisting the landlord make major changes to the services, not only will it cost him money, buy I expect I would then have to pay a lot more for the leasehold. It is this "blight" that I hope to use to drive down the asking price. As far as building regulations go, I understand that this is compliant - the previous tenant made various internal changes, such as installation of a bathroom, kitchen, moved internal walls, moved RSJ's etc., and also obtained planning permission for change of use, and I actually have copies of the local council's correspondence which doesn't make any mention of the services, taps and meters being a problem - and they are blatantly obvious - they needed to be "tapped into" to create the bathroom and kitchen and create a separate power supply.

To summarise, what I need to know is how much these "blights" are worth to me - i.e. what sort of discount can I hope to argue for. I don't want to be stitched up by the landlord and the valuers so I'm looking for anyone with similar experience to share.

sooz

ooh. i love the sound of that. might look into renting out somewhere just to dump all my hubbies excess clutter. none of it is my clutter!!!!!

if you are getting the valuer in, point these things out. state the b####y obvious, and suggest to him/her how this affects you, and your privacy [or lack of] as the landlord will retain right of access - at all times, esp if the water cut off taps are there. try to have an idea of what the flat is worth without those problems, so you can argue him down there and then. bettet that than to wait for value report to come in, then argue and have to pay more fees.

i had to remind the guy valuing a place for me to buy share of freehold that value did not include any new extensions etc - he was trying to make me pay for a two bed flat, when it had originally been one...and i was paying a so called professional!!!

also...your flat is now a basement. when you do get to buy it, re-register it as 'lower ground floor'. sounds much nicer. :rolleyes: