How to value a possible mansard

Apple_2

Thanks for all the replies guys.

I wasn't sure if I was barking mad or what - but you've given me loads of food for thought. We're all due to have a meeting later this month to discuss it, and I now feel more confident that when I raise all these issues that I'm not talking through my backside. Yes, things will be discussed and negotiated but the opening proposition of 5k to each flatowner, I'm certainly not going to agree with. Seems me and the others will have to do some research re values before and after and then do some haggling.

Thank you all very much.

itsakidsworld

Hi,

Great post and very interesting. But please may I add a little to help hopefully?

When you attend your meeting, please don't "refuse" the £5,000 as you say as at that moment in time, you have no correct value of what everything is worth.

But if you keep the meeting friendly and amicable then I feel sure that progress can be made.

At the meeting, what is important is to state that your are all, in principal, in agreement with such a plan. However, state that it is only correct that you involve the legal experts in all matters connected to this issue in order that the project is carried out as it should be. It is upto the person having the work carried out to pay for all this into the freehold company and it could be refunded once approval had been accepted, against what each property owner is to receive. That way, all areas are covered and everyone knows how they stand. This simple excercise will actually tell you alot about the person wanting to buy so keep your mind open!!

I have seen so many cases of friends and neighbours falling out after " friendly agreements" have gone pear-shaped.

courtjester

To put it into perspective, this sounds broadly similar to a situation where a party wants to purchase land to build on - the land would have a value to the freeholder as an asset and would not be sold to an occupying leaseholder or any other party for less than it's worth as a building plot.

Clearly, any builder would expect to pay for land to build on and the value of that land would depend on its location - the market value of any property built on that land would vary according to the location, so a 1 acre plot of land with building potential in central London would cost considerably more than the same size plot in say Wiltshire.

The potential to 'build' in the roofspace which is owned jointly by the freeholders has an asset value no different to the potential to build on or extend over the land adjoining the building instead.

The freeholders have another option and that is to build another flat on the roofspace themselves to increase the size of the building - with the profits shared equally amongst all joint freeholders as a joint development venture - hence there is an opportunity cost (the loss of potential profit) to interested leaseholders that must be considered in valuing the sale of that opportunity for just one occupier to benefit from.

A solution is probably to seek an independent report from a land valuer /surveyor as to the roofspace value as if this were 'building land' at this location.


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One other point - if this is a residential block, there will be considerable noise and disturbance to existing residents (scaffolding, dust, access blocked by builders, loss of privacy, loss of use of communal areas etc.) during the course of the work which could be 6-12 months depending on the quality of the project management. Occupiers not profiting from the conversion reasonably need to consider compensation for the inconvenience and loss of amenity during the work, which again is for the benefit of the party completing the conversion and has a value.