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Upstairs freehold only

Hi guys

I have moved into what was the basement of a house which is now legally converted into a maisonette. I have a lease. The freeholder lives upstairs and although I was offered the freehold I turned it down not knowing it was a house. Long story but not relevant.

The freeholder died this year and his part of the building is in probate. I asked his son what they were looking for to take on the upstairs, as it is brighter and better for us. He told me that it was a freehold only valued at £160,000

I don't quite understand this.

Is it worth trying to get the upstairs place? I was hoping I could buy to let my leasehold to my mother.

Comments

  • Ozzuk
    Ozzuk Posts: 1,884 Forumite
    Eighth Anniversary 1,000 Posts
    What exactly are you asking? Is it worth 160k to you and can you raise that?
  • I know it's a two bed with no garden. Storage heaters. Old mans house really. If the property is valued at 160k is that the freehold price plus house value?
    I want to get a second mortgage but not at that price. This is not what he has asked for. Just what it has been valued at.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 23 October 2015 at 12:21PM
    If you wish to buy, and live in, the upstairs, you will need to agree a price with the curent owner (the executers or beneficiaries of the deceased owner's estate).

    The son has had it valued at £160K, probobly as part of Probate, so he is probobly the executer. So he has to tell HMRC what the deceased estate is worth, ie the property, bank accounts, investments etc). This is so HMRC can calculate Inheritance Tax.

    So for HMRC he has had the property valued at £160K.

    Whether he chooses to eventually sell for this amount is different. He may put it on the market, find lots of people willing to pay more, and so sell it for £180K, £190K, whatever. He would then perhaps have to pay extra inheritance tax to HMRC, but that is his problem, not yours.

    If you wish to buy, research the market value (you may decide it is less than £160) and make an offer. Then negotiate.

    It sounds like you will be buying the freehold of the entire building, subject to the lease on your basement (which you already own).
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