Ripoff freeholder??

davecon1

Hello everyone

I have the misfortune of having a leasehold property and a terrible freeholder.

At the moment I have no choice but to pay £600 for buildings insurance through the freeholder, though it shouldn't cost more that £200 on the open market!

I've now been there 2 years and looking into buying the freehold. As my lease is over 100 years and ground rent is £25 the rough valuation would be £2500-£2800.

In order to work this out the freeholder wants to charge me £700 to investigate the value of the freehold which is an extortionate amount.

They own the freeholds on a number of properties and would imagine they employ this policy to all their flats. Is there any way i can challenge this charge as being unreasonable?

Thanks!

da_rule

Have you seen this page on buying freeholds when you own the leasehold: http://england.shelter.org.uk/get_advice/leaseholders_rights/buying_the_freehold_of_a_house

If you have made an offer you become liable for his legal fees, so as long as this is a true valuers fee (ask to receive receipts for everything before you'll pay) then there wouldn't appear to be much you can do.

davecon1

Thanks for that information. I checked out the link. This amount is just to investigate never mind the legal fees. No doubt they will find a very expensive lawyer to put us off even more!

da_rule

davecon1 wrote: »

Thanks for that information. I checked out the link. This amount is just to investigate never mind the legal fees. No doubt they will find a very expensive lawyer to put us off even more!

Undoubtedly. But they are well within their rights to investigate the value of the freehold (it is only fair that they get the true value too). As it is your request to purchase which has triggered this expenditure then there is a certain fairness in you being liable. It may just be that he's throwing figures at you to try and put you off. You may just have to bite the bullet and say you'll agree to pay his reasonable charges on production of a valid receipt/invoice.

chris_aaaaa

There are a number of specialist companies in this area, I asked a few how much it might cost to force the issue against an unwilling freeholder.


All possible valuations, hearings and so on.


It was over 10K + the cost of the extension - I suggest you google up a company and ask before you start.

TrickyDicky101

If you own the leasehold to an apartment or flat, then you won't be able to buy the freehold to your own flat individually (the freehold will exist singularly for the entire building), so are you looking to buy with all the other leaseholders in your building?

davecon1

There is one other leaseholder so we are looking to buy together. The previous owner of my flat tried to buy but their charges were so great they were put off.

nomoneytoday

Why would you spend £2500+fees to save £25 a year?

fivetide

nomoneytoday wrote: »

Why would you spend £2500+fees to save £25 a year?

OP clearly stats in the first post they also have to pay £600 a year buildings insurance which they know they could get for £200 so in five? years they'll have a freehold property and be making the money back.

propertyman

But you can challenge the insurance at the first tier tribunal as being not fair and reasonable,

While you think you can insure for £200 very often flat owners don't have the declared value of the building only a rough guess based on market value, which it has nothing to do with, and no claims history.

dacouch

propertyman wrote: »

But you can challenge the insurance at the first tier tribunal as being not fair and reasonable,

While you think you can insure for £200 very often flat owners don't have the declared value of the building only a rough guess based on market value, which it has nothing to do with, and no claims history.

They also tend to obtain a quote for building insurance from a normal homeowners policy which is an entirely different beast to a block of flats building policy