Buying common area freehold - with a twist

Henry999

Hi all,

I hoping someone has some experience or expertise in this area. I know really it requires a proper valuation but I could do with knowing roughly where things stand before I get all our residents to commit to the expenditure of a valuation.

Now I live in a row of terrace of houses that sit on a common area (a sort of elevated ramp area, with lighting). We obviously have right of access over this area to get to our front doors. The common area is falling into disrepair and we would like to purchase it as I understand we our entitled to do so by law. The freehold still sits with the house builder as they held onto it after selling the houses a few years ago so they could build some additional flats on some of the spare space - there is no spare space left, they've now milked it as it were. We were always told this transfer of the communal area to a share of freehold structure with the residents was the plan once the house builder finished the new flats which have been finished for 12 months or so. The idea being we take the common area for our terrace houses sit and the builder keep the common area from where the flats they built - as they still own them and our renting them - effectively chopping up the area.

Now normally a freehold valuation would be down to the leaseholds of the terrace houses, how long they had left on them etc. also how much ground rent is being collected. In short how much income the area generates. The thing is the terrace house owners - including myself - own the freehold to all their houses and NO ground rent is collected. (BTW no ground rent being collected is why this area is falling into disrepair and we want to manage it ourselves, why would they spend money for upkeep if they are getting nothing in?)

So my question is given we are all freeholders and there is no ground rent - if you exclude legal fees for both us and the seller - how much is this area likely to be valued at?

Is it effectively worthless or quite cheap? Does someone know of a similar situation or are perhaps a valuator themselves. As I say before I get the residents to commit to forking out for the valuation hope to find out if its going to come back prohibitively expensive,

Any thoughts appreciated.

Thanks

H

unforeseen

Is the common land part of the freehold that the houses are in?. If it is on a separate freehold then I don't understand how can have a right to buy it

Mossfarr

Have you considered speaking to the house builder and ask if he would be willing to transfer the freehold to you for nothing, as you expected - but that you cover all his legal costs?
The land is not generating any income for him but is potentially costly in terms of maintenance.
Its unlikely he will let you have it for nothing but at least it starts the negotiations.

davidmcn

Henry999 wrote: »

we would like to purchase it as I understand we our entitled to do so by law

Which law is this?

G_M

You have a right by law to purchase this land. So do I. Or anyone else.

Provided of course the owner agrees to sell.

Speak to the owner.

Henry999

Firstly i received no notification that any replies to my thread had taken place so sorry for the tardy response. I'm appreciative of everyone who has replied:

My lawyer told me we were entitled - I understood it was :

Commonhold and Leasehold Reform Act 2002.

My understanding is that the current freeholder can't charge whatever they want - it was to be done by a proper valuation. It was some insight into what such a valuation might be given - considering the unique circumstances - that i was after.

thanks

Henry999

It's common land (actually an elevated structure) the the freehold houses sit on. There was an agreement at point of purchase (the house purchases) that this transfer would take place at a unspecified point in future,

As per previous posts - I know a professional valuation will need to take place - but was hoping for a clue as to what sort of figure i could expect. Given such valuations are all about income - of which there is none.

Thanks