Buying My Loft??

JimmyTheWig

Rtype wrote: »

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

I guess a surveyor could value it. But what's the point? I can't imagine there is anything that says they have to sell it to you for a reasonable price.

I've got a can of Coke here you can buy for £20. You could get an expert to value it and find it is worth 80p. But I'm not going to sell you it for 80p. The price is £20. I presume that you won't buy it. But that's fine with me. I'll keep it.

eddddy

Rtype wrote: »

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

The valuation would normally be based on the 'profit' you would make by buying and converting it.

For example... (I don't know where you are, so these values might be way out)... but let's say:

• Converting the loft would add £100k to the value of your flat

• Converting the loft would cost you £40k

• So there is £60k profit to be made

• So perhaps a reasonable price for you to pay is £30k - so that you make £30k profit, and the freeholders make £30k profit.

G_M

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, I also own a share of the lease which is managed by a management company (so I effectively own my lease).
I assume you mean you own a share of the freehold to the building?

The 'management company':
1) do they own the freehold (with you being one of the Directors) or
2) are they employed by the freeholders to assist with managing the building?

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.
if 1) above, then you need to negotiate with them over the price, as they own the freehold.
if 2) above, then they are simpy advising the freeholders (who can over-rule/ignore them)

....30k just seems stupid. I don't think the flat would increase in value by even half that amount tbh.
It is for the freeholder (whoever they exactly are) to decide
a) if they wish to sell and
b) at what price

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.

It sounds like:

* the freehold is owned by a company (A).
* Company A is owned by x people (shareholders). How many flats/shareholders?
* you are one of 2 Directors of A
* Company A employs a management company(B) to run the building
* Company B has provided you with advice on the price - it is not their decision either whether to sell or at what price. That is for Company A to decide.


You need to read the Articles of Association (well, as a Director you should not need to read them - you should know them!) of A to establish how decisions are made eg majority vote of shareholders?

Assuming that Company A (via a valid, quorate vote or whatever) agrees to sell the attic to you, at whatever price, you can buy it.


As a shareholder in A yourself, you would receive your share of whatever price you (as leaseholder) paid A (the freeholder). Presumably based on the number of shareholders/flats.


Your lease would be extended to incorporate the attic. To convert it, you would probably also need the consent of Company A (structural change).

AdrianC

You need to pause and think about your two hats.

You own two things.
1. You own a leasehold flat.
2. You own a portion of a company which owns a freehold building.

You do not currently own the loft. You part-own the company which owns the building which contains the loft. So do all the other shareholders in the company.

You want to buy the loft from the company. The company has a duty to ALL shareholders to gain the maximum value from that. If it was selling the basement or the garden to the ground-floor flat leaseholder, wouldn't you expect it to be at a realistic market value? After all, that money goes to maintain the entire block for all of you.

Tom99

Since you will need permission to convert the loft, particularly breaking through the roof for windows etc there seem little point in paying a large sum now unless you can be sure that, whatever your plans turn out to be, you can go ahead.
Do you need planning permission to convert the loft? If you do there is no point paying a large sum until that is granted.

SmashedAvacado

The G_M post is accurate and complete. but note you will recieve part of the proceeds of any sale of the loft to you.

if you make an acceptable offer you should make sure the offier includes a variation to the lease and approval to undertake the conversion works (subject to plans being approved / compliance with regulations etc), as otherwise once you own it as well as getting planning permission you will likely need permission to pierce the roof to get light in.

If you were to offer a lower price you could agree a variation to all the leases whereby you would become solely responsible for the roof - maintenance and cost for the remainder of the term of the lease. This might be something that would appeal to other owners as presumably as part of the conversion you'd be looking to overahaul the roof. You might get the loft for nothing on that basis if you offer smart.

AdrianC

SmashedAvacado wrote: »

but note you will recieve part of the proceeds of any sale of the loft to you.

You might, as might every other shareholder, should the directors of the company decide to distribute it.



Or the directors of the company may decide to retain it for future expenditure on the property - effectively, reducing what you spend in the future.

rachel230

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, 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

Such greed! It makes me sick.
Go onto Lease Knowledge Partnership and National leasehold campaign. You will get good advice. Sounds like you need a specialist solicitor to deal with this. LEASE is another place to go to for advice. They are government run and give free 15 minute sessions to advise. You book on line and can have as many telephone appointments as you need. They may advise you to go through the official route in which case they will calculate what is deemed a fair price as a guide, though they cannot force the freeholder to accept their calculations. The calculations (if relevant) will be based on your ground rent, years remaining on lease etc if applicable.

jonnygee2

30k just seems stupid. I don't think the flat would increase in value by even half that amount tbh.

If it's just a storage space, I don't think it adds anything to value. Unlikely to be a major influencing factor for any purchaser. If you want it for this, just offer what it's worth to you to have a small additional storage space.

Get permission to extend into it, and it's a different question. An extremely rough value might be:

Price of extension = Value of house with extension - Value of house now - cost of building extension - (possibly) another 10% or so for the inconvenience.

Smi1er

So you own a leasehold flat, and are part owner of a company that owns the freehold of the building. Is that correct?

If you were to buy a lease for the loft then the money belongs to the company that owns the freehold, part of which you own. So the £30K goes to the owners of that company and not to the reserves of the management company.