How do I Calculate the Freehold Value of my Property

strummer21

Hi All,

I currently own a leashold property and would like to buy the freehold. Does anyone know the exact formula for calculating the value of the freehold.

kind regards

charliee_3

this might help
http://www.lease-advice.org/publications/documents/document.asp?item=10


its complicated though as it is not only based on the value of the house, but also on what you pay (so the income over time on their investment) whether it can rise or if it is fixed, the amount of time left and whether the freeholder wants to keep it or sell it i suppose...

theartfullodger

Do you mean value or price??


Cheers!

Lodger

strummer21

theartfullodger wrote: »

Do you mean value or price??


Cheers!

Lodger

Hi,
I mean if I want to buy it how much will it cost me. How do I work out the price to ensure that the freeholders offer is reaonable. There are 77 years left to run on the lease. The property is a house, not a flat, (not sure if that makes a difference) and the value of the hosue is approximately £110k and the ground rent is £45 per annum. Any help would be greatly appreciated.

charliee_3

Only a valuer can work out the price as it is not just a simple formula
we have just paid £1500 for lease for our house 960 years left to run and rent of £18 a year that cant be increased. Our surveyor said that this was pretty much on the money as wthout any other factors they go on 8% yield over the term. Plus we had to pay costs of about £400 i think...
The best thing to do is ask them and see what they say then come on here and see if its reasonable or get your own valuer to work out the price...

strummer21

I have been quoted £12,500. Does that sound reasonable? I have undertaken my own calculation using an online calculators which suggests about £5k. Any further help would be much appraciated.