Freehold Purchase - What to do?!

Kad_Williams

x

ansonlane

sounds strange... though the freehold purchase was divided equally... you need to refer to your legal team. The people that did the valuation would point you in the right direction

ansonlane

can anyone help about the timetable for a freehold purchase.. we have been given a draft contract - how long do we have legally before it expires....

eddddy

It sounds like somebody hasn't explained this to you properly.  Who has proposed the premium apportionment that you mention?

The price for a freehold will take account of any development potential. So let's say the price of your freehold is £30k (taking into account the development potential).

It's up to you 3 leaseholders how you raise (or split) the £30k. For example:

• 2 people could each pay £15k - and the 3rd person isn't involved
• 1 person could pay £20k, another could pay £10k - and the 3rd person isn't involved
• 3 people could each pay £10k
• 1 person could pay £2k, another could pay £10k, and another pay £18k
•  2 people could pay £1 each - and the 3rd person pay £29,998
• etc etc etc

So I guess somebody has proposed a split which they think is fair. If you agree that it's fair, you can go along with it. If you don't think it's fair, you can argue for something different.

(I assume that the 'deal' would be that you pay an extra large price for your share of the freehold, which then includes consent for building your extension. But make sure that's the case.)

Tom99

Kad_Williams said:

Hi guys  - just had a valuation on the freehold of the building I live in. It has come back very high on account of the planning application on my flat. And the portion of freehold premium attributed to that application has been apportioned to me. The other (3 of total 4) leaseholders have a very small portions of the premium to pay. This makes sense and isn't the absolute end of the world. I had contingencies in case something like this ended up being the case. 

My question is:  Could I expect the other leaseholders premium to stay as small if I decided to no longer participate in the purchase? They still want to purchase. 

What is the planning application for that makes the freehold worth more because of it?

Would you need freeholder's consent, which can be withheld unless you pay the freeholder a premium, in order to implement this planning consent?

Is so, don't forget you will still need that freeholder's consent after the leaseholders buy the freehold.