Buying My Loft??

Rtype

I live in a top floor flat (small block) and have the opportunity to buy my loft.

I have sole access to it as the hatch is inside my flat and the loft only spans my flat, I also own a share of the lease which is managed by a management company (so I effectively own my lease).

I have enquired about buying the loft with a view to using it for storage and possibly in the distant future, to convert it.

The management company have looked into this for me and come back saying that a reasonable amount would be at least £30K, this just seems ridiculous to me.

It seems that this is quite a specialist subject that nobody really knows too much about, hence why I'm reaching out on here.

Has anybody done this before or can anybody point me in the right direction, 30k just seems stupid. I don't think the flat would increase in value by even half that amount tbh.

Any advice would be greatly appreciated,

Thanks

Exodi

Gahh these threads make me want to pull pull my hair out.

If you were buying the loft in Buckingham Palace for 30k, I'd say you got a pretty good deal. Conversely, if you were buying a loft in a shed in Burnley (sorry Burnley) then I'd say you were being robbed.

Honestly, how do you expect anyone to respond to this?

SmashedAvacado

Do you mean you own a share of freehold? if so, then you would be entitled to part of the proceeds of the sale of the loft to you - eg if there are 4 flats, all the same, then you would get 25% of whatever agreed price was. If the other owners of the flats are individuals then why not by-pass the agent and ask them if an extra 5k each would seal the deal for them - as basically if you dont buy it, there is no value of it to anyone else.

need_an_answer

Don't automatically assume that because you can buy the loft you will then be able to extend into it...

MEM62

Rtype wrote: »

I live in a top floor flat (small block) and have the opportunity to buy my loft.

I have sole access to it as the hatch is inside my flat and the loft only spans my flat

Rtype wrote: »

The management company have looked into this for me and come back saying that a reasonable amount would be at least £30K, this just seems ridiculous to me.

Why not just use it for storage for now? There is nothing stopping you.

Rtype wrote: »

I have enquired about buying the loft with a view to using it for storage and possibly in the distant future, to convert it.

You may find that you lease will prevent this type of conversion. Check you lease first. If the lease permits and if and when you reach the point where you are serious about converting you can go back and negotiate on the price.

Rtype

OK so as far as I'm aware, The lease is 1000 years and we pay a peppercorn rent (nothing). The lease is managed by a company set up to control the lease, which I am a director of, and is managed by a management company.

In terms of getting permission, It would be down to the directors of the company who oversee the lease which I am one of the directors of and I have been told by the management company that as long as the directors agree to it, which they have said they have no problem with, I can convert it.

The loft is unusable by anybody else and worthless to them so I can effectively just use it for storage and pay nothing right now but if the price was reasonable I would potentially buy it with a view to converting it in a few years time (possibly). I was initially told that it would be a few thousand pounds due to the access and the fact that it's useless to everyone else but to then be told £30k is just silly money, it would be pointless buying it for that as i'd spend far more on that and the conversion than the flat would be worth.

Exodi - Really not helpful, why bother commenting in that case? Why not ask questions or help instead of doing the opposite?

In terms of approaching to owners of each flat, Ive been told it doesn't work that way. It would need to be done through the management company and any money would go into the reserve funds.

Thanks

Rtype

MEM62 wrote: »

Why not just use it for storage for now? There is nothing stopping you.



You may find that you lease will prevent this type of conversion. Check you lease first. If the lease permits and if and when you reach the point where you are serious about converting you can go back and negotiate on the price.

The reason I'm looking into it now is because I am one of two directors of the company who control the lease, the other director is currently selling and moving which would then mean all permissions would need to be from each owner which complicates things.

Yes you're right, I am currently using it but would like to board it out properly for proper use over the next few years and then 'maybe' convert it but i'm not paying 30k.

JimmyTheWig

Rtype wrote: »

if the price was reasonable I would potentially buy it with a view to converting it in a few years time (possibly).

The price isn't reasonable. So don't buy it.
Either they drop the price, or you decide the price they are offering is worth it.

Rtype

JimmyTheWig wrote: »

The price isn't reasonable. So don't buy it.
Either they drop the price, or you decide the price they are offering is worth it.

Is there somewhere or somebody that I can speak to to establish what 'would' be a reasonable price?

MEM62

Rtype wrote: »

The reason I'm looking into it now is because I am one of two directors of the company who control the lease, the other director is currently selling and moving which would then mean all permissions would need to be from each owner which complicates things.

Yes you're right, I am currently using it but would like to board it out properly for proper use over the next few years and then 'maybe' convert it but i'm not paying 30k.

We have a similar setup. In our case there are 10 flats and each owns 10% of the management company. The difference in our case is that we would not accept a decision like this without the agreement of the majority of shareholders. We would not allow the three directors to make arbitrary decisions on such important matters.

If you can make it work in your case, I would pursue it.

One other point I would make is that I do not believe that the money can be placed into the reserve funds. You are effectively selling off part of their property and they have a right to the proceeds. All shareholders would have to agree what is done with this money. Have you also considered the the management company will have legal costs?

Rtype

MEM62 wrote: »

We have a similar setup. In our case there are 10 flats and each owns 10% of the management company. The difference in our case is that we would not accept a decision like this without the agreement of the majority of shareholders. We would not allow the three directors to make arbitrary decisions on such important matters.

If you can make it work in your case, I would pursue it.

One other point I would make is that I do not believe that the money can be placed into the reserve funds. You are effectively selling off part of their property and they have a right to the proceeds. All shareholders would have to agree what is done with this money. Have you also considered the the management company will have legal costs?

Thanks.

Yes they've supplied me with costs for their legal part, they've also said that the loft space would have to be put up for sale to every leaseholder which seems odd as they have no access to it.

Currently it seems pointless due to the extortionate cost but I will keep digging to see if there is an easier way of finding out what the true cost 'should' be as 30k can't be right.