Simarc and Freehold Purchase Costs

taylor86

Hello all, I’m not sure this is the correct place to post? I currently live in Leasehold house with 947 years remaining on a lease. We are considering purchasing the freehold due to potentially extending or moving. To get a quote from Simarc I have been told I need to pay a fee.

ive been told I will need to buy the freehold and pay their legal costs. Does anyone have a rough idea how much their legal costs are likely to be or even if we are talking hundreds or thousands? Also would I need to appoint a solicitor for myself?

I appreciate any advice or experience you could share. I’m in the dark and would hate to pay for a quote to then find it is unaffordable.

princeofpounds

Read this as a starter:
https://www.lease-advice.org/advice-guide/houses-qualification-valuation/

You can get an idea of what the freehold should cost by using a freehold calculator online. The key variables are value of property, length of lease and ground rent. If you have escalating ground rent, it's a bit more complex and you might have to dive into the maths a bit (solicitors who work on freehold purchases can put you in touch with surveyors who produce such valuations if necessary).

Whatever it should cost, that doesn't mean Simarc will ask for something reasonable first time around. So you may need to remind them that you can proceed to Tribunal to access a fair price - you'll typically get a more rational offer out of that, although they may still shoot for a modest premium because it will be faster and cost less in legal fees to do it direct with them.

You would need a solicitor and to pay Simarc's reasonable costs too.

How much does it cost? If it's an 'informal' negotiated purchase then it's much like purchasing any other property title, about a grand each side plus the price of the freehold itself. A formal tribunal? Not sure, but I've seen people throw around ~4k as a number before. With a 947 year lease, if you have minimal ground rent the freehold itself may only be three figures.

As for the specific point about paying a fee to get an informal quote... it's not something that is regulated for or against, but I'm not sure I'd entertain that. But maybe other contributors can be definitive on this. Certainly your solicitor will know how to play that game.

taylor86

Thank you, the above is very helpful. The ground rent is fixed at £15pa so seems as though the legal fees will be the bulk of the cost. 

The £120 fee has been justified as ‘obtaining a copy of the lease and preparing a written quotation.’ I may approach a solicitor before I go any further. There are far too many Simarc horror stories about!

taylor86

We have now paid the fee for a quote and are in the processing of approaching a solicitor to act for us. 

sammahoney

Hi Taylor, 

can you help me please with what the process was for yourself & what costs are involved please.

Me & my partner are first time buyers, currently buying a house getting a mortgage on it but it a leasehold and simarc property management own the leasehold.

But we want to purchase the free hold from simarc property like you did, as I am so scared of them being the owners of the free hold as all the reviews online are so so bad so wanting to get away from them asap! 

Hope you can help,

Thanks Sam 

sploggits66

Also in a very similar situation here (750 yrs on lease, Simarc want £120 simply to quote, £15/yr ground rent). Any follow up on how things went would be much appreciated! 

0114bexton

Any update on the guys. I'm contemplating buying my freehold but they are asking 15K .