buying freehold: who pays what if some opt out?

pigeonpie

We've recently had a freehold valuation done by a surveyor. There are 10 flats and he's valued the freehold at £40 000. I thought that if some people opt out of participating, that (say the price *is* 40k) the freeholder would still get his 40k so those of us who are participating have to find extra to cover the cost of those who aren't.

However the surveyor says that we don't. He says if say 7/10 participate, then the freeholder only gets 70% of the value. I've read the stuff on LEASE's website and I don't think he's right....who is right, please?

Doozergirl

I'd speak to LEASE directly, but I don't think he's right either. He's a surveyor though and I'm not!

guppy

The freeholder gets market value (as negotiated), plus his share of the marriage value, plus his legal/valuation costs paid.

As you say, the less people that take part, the more the rest of the tenants will have to pay.

pigeonpie

I will check with LEASE but you've both reinforced my initial concerns. It also worries me that the freehold valuation's been done by someone who makes basic mistakes like that. He has also set several hundred moggies among the pigeons (p'pie should know )by horribly over-valuing 3 flats individually (as part of his calcs which are largely unexplained and so are a bit of a dark art) and undervaluing the 2 quite-bleedin'-obviously "best" flats. I just hope this doesn't derail the whole process. Suppose the percentiles payable are negotiable among us all, but the overall price to the freeholder will be set. Could be interesting to see what his own surveyor comes up with. Either way, negotiations could be tricky. I wish we'd gone with someone else, but the only person recommended by a solicitor was £1000 more and sent me an email riddled with typos and blatant inattention. Oh eck.

PS no marriage value, thank goodness.