Selling freehold separately to leasehold flat

LanPop123

Hello forum users

I wonder if you can help me.

I own the freehold on a converted building which is split into two flats. I also own and occupy the ground floor flat. I am considering selling my flat and am wondering what the best thing to do is with the freehold.

The upstairs flat has only 58 years remaining on the lease, so the extension should be worth something if and when it comes up. On the downside it has an assured tenant (moved in mid 90s but was not served notice that it was an assured shorthold tenancy), and is in a poor state of repair.

The owner of the upstairs flat has no interest in owning a share of the leasehold (or in maintaining the property beyond the bare minimum).

As I see it, my options are:

1. Sell my flat with the freehold
2. Sell my flat and keep the freehold
3. Attempt to sell the freehold separately to the flat.

Any advice would be gratefully received, especially on option 3, as I don't know how one would go about selling a freehold separately.


Thanks.

G_M

What's the remaining lease on (your) downstairs flat? If also 58 years no buyer will get a mortgage so you'll struggle to sell.

Putting that issue aside, why not offer the lease for sale and offer any buyer the option of the freehold, at an additional cost, if they want it? Many people like the idea of owning their freehold and being more in control of their destinies....

LanPop123

Thanks G_M. I have 86 years left on my lease, but as i am the freeholder I can presumably grant myself a new lease at minimal cost before i sell.

Nick_Plotnek

This is an easy one! If you don't need the money, sell your flat and keep the freehold. And don't grant yourself an extension first unless the purchaser of your flat makes it a deal breaker.

Good luck!

propertyman

There si a simple answer

1: Extend your lease to 999 years and set a reasonable ground rent, to make it easily saleable.

2: Sell the freehold to an investor, while you still own the flat, avoiding the requirement to first offer it to the other owners; whether they say they are not interested , you still have to.

As a freeholder with no vested interest having sold the flat, you are still liable for a host of matters for the building which are time consuming and in most cases expensive.

A local chartered surveyor estate agent can assist with the sale of the freehold and the flat ( and minimise tax) rather than your local estate agent who won't have clue, even if they say they have one..