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Buying a freehold
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roxytoo
Posts: 47 Forumite
We are a block of 5 flats. We have 125year leases. (Starting last year) We have been offered the opportunity to buy the freehold between us. Estate agent says it will not add value to each property as we have such a long lease. I thought it would. Can anyone advise? The freehold is around £6000 each on flats worth £125000 - £150000
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Comments
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I suspect it would add to the current value but not the full £6000. Unless you would manage the property between you there would still be management fees but you are likely to have more control over service charges.
Whats the annual ground rent? Presumably the £6000 would be returned eventually through not paying this.
You will be getting first refusal of the freehold. If you don't buy it its very likely to be sold elsewhere with the potential for excessive charges.
I would be keen to buy it but would also be getting advice on the price.0 -
Thanks, we are also going down the route of self management. My gut feeling is to buy it but after the remarks of the agent not so sure now. Ground rent is £250 a year0
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£6000 divided by £250 is 24 years. If you sell in 8 years you will have saved one third of the cost, £2000. Savvy buyers will also be aware of this potentially increasing the flats value.
Does the ground rent increase over time?0 -
Buy it. No brainer.0
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Buy it and self-manage IF you all get along and are all willing to help.
If some/many flats are let out by landdlords, or you find yourselves bckering over the purchase, then beware - the bickering will continue into the self-management0 -
Buy it. You don't want a new freeholder like mine. I would treat them like a hole in the roof that can't be fixed.0
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Because what GM has written is really sound advice I am setting it out again:Buy it and self-manage IF you all get along and are all willing to help.
If some/many flats are let out by landdlords, or you find yourselves bckering over the purchase, then beware - the bickering will continue into the self-managementRICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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