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buying share of freehold in enfranchised block
jee
Posts: 288 Forumite
Hi all
I am the only person in my block not to own a share of the freehold- the owner before me didn't bother when it was enfranchised.
I am now trying to extend my lease and was told by the mgt company's solicitor I buy a share of the freehold and then the lease is extended.
I explained the situation to a a surveyor and had a valuation done for a lease extension which incurrs some marriage value as well because it's under 80 years.
I passed it on to my mgt company, who in turn forwarded it the directors (my neighbours) of the freehold association.
I was first told that it was accepted and then a few days later asked whether the valuation is the "going rate" for a share of the freehold and I need my surveyor to put this in writing.
My question is really whether there would be much difference in the two values and whether they are in fact the same thing seeing a lease extension cannot be made without buying a share of the freehold and the extension is an administrative process after?
Thanks for any help.
I am the only person in my block not to own a share of the freehold- the owner before me didn't bother when it was enfranchised.
I am now trying to extend my lease and was told by the mgt company's solicitor I buy a share of the freehold and then the lease is extended.
I explained the situation to a a surveyor and had a valuation done for a lease extension which incurrs some marriage value as well because it's under 80 years.
I passed it on to my mgt company, who in turn forwarded it the directors (my neighbours) of the freehold association.
I was first told that it was accepted and then a few days later asked whether the valuation is the "going rate" for a share of the freehold and I need my surveyor to put this in writing.
My question is really whether there would be much difference in the two values and whether they are in fact the same thing seeing a lease extension cannot be made without buying a share of the freehold and the extension is an administrative process after?
Thanks for any help.
0
Comments
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I think that they don't want you getting a bargain incase it decreases the value of their freehold shares ...
I might be wrong, but they seem to be wanting to preserve their investment by ensuring that you don't undercut what they paid, therefore setting a precident. Just my tuppence worth...Original Mortgage Debt - £130,330.
Current Mortgage Debt - £116,605.
2010 O/Ps - £5,000. 2011 O/Ps - £1,978.42.
Original Loan Debt - £6,000. Current Loan Debt - £3,500.
Original HP Debt - £1,000. Current HP Debt - £240.0 -
Make sure that if you buy s a"share" in the freehold you do then get a "free" lease extension. There is no law that says they have to give it to you for nothing!RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Richard_Webster wrote: »Make sure that if you buy s a"share" in the freehold you do then get a "free" lease extension. There is no law that says they have to give it to you for nothing!
Thanks Richard- I do have this confirmed in writing!
Has anybody seen a difference in valuation for the lease extension as opposed to a share in freehold? I would have thought that as service charges and my vote in decisions stays the same it'll be the same.
I'm getting quite annoyed with the "directors" now, as they initially said it was ok and then came out with these questions.0
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