Selling Share of Freehold

charley1965

I need some advice please, here goes.....

I own my flat which has a 99 year unexpired lease, I also own a share of the freehold with my neighbour. There are just 2 flats involved. I intend to sell my flat within 6 months. My neighbour has asked me if I would consider selling him my share of the freehold to her before I sell, therefore making her the landlord of both flats.

I am prepared to do this for the right price as long as I can sell my flat with no problem. But my question is, is my flat still as marketable with the 99 year lease? I have previously been told that owning a share of the freehold adds 10% to the value of your property. Would I lose this extra 10% even though the lease is brand new and has 99 years unexpired?

Any advice welcome please!

cattie

I've owned a few leasehold flats in London & a decent length lease here will always have interest & fetch a decent price. However, a flat with sof will be more appealing to purchaser's as they won't have the worry about extending the lease in years to come.

If I saw 2 identical flats, one with sof, one without & the difference in price was say £7000, then I'd definitely be more interested in the sof one as I know I'm never going to have bother with extending a dwindling lease should I own the flat for a long period of time.

What you need to find out before deciding on your neighbour's request is a couple of local ea's opinion of your flat's value & marketabilty both with sof & a lease without sof.

Also, I'd question why does your neighbour want to have the whole freehold & are they expecting to get a bargain price for it? Your decision needs to focus on what is best for you both financially & for a quick sale of your property.

charley1965

Thanks for your reply (love your cat picture!)

Yes, I was definitely going to get a few EAs round to clarify the difference in price etc.

My neighbour doesn't expect a bargain price, she has said she will cover the difference in price for me selling without sof and for my trouble. She wants it as a long term investment. I am more concerned with the saleability of my flat and I won't do this if I have trouble selling.

Wannabesaver_4

hi Charley,

i am in a similar position whereby we are selling our house and it is 2 flats and share of freehold. All i would say is that the fact it is freehold is VERY saleable with potential buyers. You might not loose any money but it may take longer to sell.

Because of that we sold out house in 10 days!

Good Luck x

charley1965

Thank you for your advice. I think I am going to keep my share of the freehold and not sell it on.

Thanks!

Doozergirl

charley1965 wrote:

Thank you for your advice. I think I am going to keep my share of the freehold and not sell it on.

Right decision I think. Too much admin for little or no gain, if nothing else.

Richard_Webster

Your buyer's solciitor will not be happy if you don't sell the share in the freehold with your lease when you sell the flat. If your only interest is the possible future investment value, will you keep in touch with your buyer and attempt (with the other shared freehold owner) to collect ground rent from the lessee who has bought your flat?

If I was acting on a purchase of such a flat I would advise my buyer client to be very wary indeed. How do they know that you will retain interest and not disappear? Will you be prepared to co-operate with the other co-freeholder when he wants to sell his flat and wants to transfer a share in the freehold to his buyer?

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.

Doozergirl

It's charley1965's neighbour that wants 100% of the freehold.