Selling a freehold

dc1606

I have recently inherited a freehold on a house in outer London on which the lease is for 950 + years. The ground rent is small at £25 per annum. The owner of the house has asked if she can purchase the freehold. Is there any way of calculating the value of the freehold or is it worthless?

Beats85

The leaseholder will need to speak to a surveyor to work out the value of the freehold. The lease advice is probably the best place for information. They will serve a notice on you and you can either accept their offer based on your surveyors calculation.

lease-advice.org/advice-guide/houses-qualification-valuation/

eddddy

dc1606 wrote: »

Is there any way of calculating the value of the freehold or is it worthless?

These calculators suggests it's worth about £500 :
https://www.freehold-sale.co.uk/freehold-calculator/
https://www.freeholdcalculator.com/freehold_simple.php


If you get valuers involved or insist that the leaseholder serves notices etc - that will run up fees of maybe £2k to £3k for the leaseholder.

So some freeholders might say...

"Just pay me £1.5k for freehold (plus my legal fees), and you will be better off because you don't have to pay so much in valuation and legal fees."

Other freeholders might be fairer and say...

"Just pay me £500 for the freehold (plus my legal fees), because that's what the legislation suggests you should pay."

It's up to you. (But insisting that valuers are involved, and serving notices seems like a waste of money in this case.)


Edit to add...

Or you could start by asking the leaseholder to make you an offer... to see what price they have in mind.

Tom99

eddddy wrote: »

Or you could start by asking the leaseholder to make you an offer... to see what price they have in mind.

I would go with that option. If you start involving a valuer for each of you, paid for by your tenant, that cost alone will be at least £1,000.

dc1606

Thank you all for the sound advice