Purchase Freehold

Flixton86

I want to purchase the freehold of my house - the freeholders have made me offers in the past of c£3,100 to purchase it but having now lived in the property for 2 years am I right in thinking I can make them an offer?

Online calculators suggest the value is more £1,500 (there is around 975 year left on the lease and I pay £85 pa).

What is the normal process for making them an offer? Are the chances low they will accept my proposal?

I definitely want to purchase the freehold. We are having work done on the house this year for which I have to pay them £650 for the privelage of anyway which is ridiculous. Should also make selling the property easier when we come to do that.

Thanks

Beats85

There is specific process to buying a freehold (I believe Martin has written a guide). You would need a surveyor for this process and a solicitor (its worth paying the money and making sure everything is correct). If the freeholder doesn't budge from £3,100 you have the choice to go to the tribunal, but it will easily cost you the difference.

Just make sure you get a lawyer involved when coming to an arrangement. I made an agreement with my freeholder the day of the tribunal, they the freeholder said an agreement never happened even though both me and his solicitor were present at the tribunal to say an agreement had been made . Our lawyer had filed it with the property tribunal and we won the case at court.

eddddy

You can make an 'informal' offer at any time - you don't have to own the house for 2 years.

The 'informal' process is like buying a 2nd hand car..

• the freeholder says "I want £3,100",
• you say "I'll offer you £1,200"
• and maybe you agree on somewhere in the middle. (Or maybe you don't.)

BUT... once you've owned the house for 2 years, you can start a statutory process to compulsorily purchase the freehold.

You'd probably have to instruct a solicitor and valuer for this, and agree to pay the freeholder's solicitor and valuer.

So you'd need to allow for a few thousand in fees - plus the £1500 you mention.

When you take the statutory route, it's often called 'enfranchisement'. Heres some info: https://www.lease-advice.org/advice-guide/houses-qualification-valuation/

rubble2

Apologies for kidnapping your thread, but can i just ask a question on this subject please?

We have recently bought a Leasehold house and have received a letter which states that the Freeholder is currently looking to sell their freehold interest. They have quoted a price and state that this price includes the Land Registry fee and 'our processing charges'.
Am I correct in thinking that this includes the Freeholders legal fees and that therefore we would only be liable for the freehold purchase cost stated and our own legal costs for completing the purchase?

Thank you

eddddy

rubble2 wrote: »

Apologies for kidnapping your thread, but can i just ask a question on this subject please?

We have recently bought a Leasehold house and have received a letter which states that the Freeholder is currently looking to sell their freehold interest. They have quoted a price and state that this price includes the Land Registry fee and 'our processing charges'.
Am I correct in thinking that this includes the Freeholders legal fees and that therefore we would only be liable for the freehold purchase cost stated and our own legal costs for completing the purchase?

It's like when you get a quote for anything else - the best thing to do is to ask the freeholder at the outset if there are any other fees you'd have to pay them.

• I guess a 'good' freeholder might mention all charges at the outset.

• A 'bad' freeholder might try to not mention all the fees until a bit later.

(It's just like when you get a quote from a plumber. Some plumbers will give an all-inclusive quote at the outset. Others might give you a basic quote to get you interested, and then go on explain that you need to pay them more for some things.)