Selling a Freehold

LDWC

Hi, really hope I can get some advice/help.
We own the Freehold of our neighbours property and he would like to buy it from us.  The ground rent is £7 PA,  and the lease has 834 years left on it.  Is the Freehold worth anything to us?  I understand he has a right to buy it and we are happy to sell (we think) so with that,  how much can we sell it for? I don't want to incur any legal costs,  but he is quite keen to buy it and is getting a bit fed up with us. 
I've trawled the internet for answers but its very confusing. 

AdrianC

It's worth what the two of you agree between you. No more, no less.

Sit down and chat about it.

Let's start with... "How much more would his house be worth freehold vs current £7/834-yr leasehold?"
(the answer to that is almost certainly "virtually nothing")

user1977

AdrianC said:

Let's start with... "How much more would his house be worth freehold vs current £7/834-yr leasehold?"
(the answer to that is almost certainly "virtually nothing")

If nothing else it saves him from any surcharges by conveyancers when he sells (or remortgages) for having to deal with a leasehold.

Also, are there any covenants which would require him to seek the OP's consent for anything? Even if those are "one in a blue moon" events, they've got to be worth something.

eddddy

The freehold has very little value.

You could say it's as much as you can persuade the buyer to pay - maybe £100 or £200 or £300.

But they sound desperate to buy it - so maybe you can charge even more.

It's usual for the purchaser to pay the seller's legal fees on top.

LDWC

@eddddy


Thank you for replying 

I did think the Freehold had very little value so thank you for confirming that,     

 there's really no point getting it valued is there.         

he originally was selling his house for £350, but has sold it for £340,  so looks like he was leaving 10K for the Freehold.         

 I don't think he would pay  that though.  would be nice though

would it be unreasonable to charge 834 x 7?? 

user1977

LDWC said:

would it be unreasonable to charge 834 x 7?? 

Yes. £7 in the future isn't going to be worth what it is today, is it?

If all the freehold does is generate income of £7 a year, then its value is more akin to whatever bank balance would result in annual interest of £7. 

LDWC

user1977 said:

LDWC said:

would it be unreasonable to charge 834 x 7?? 

Yes. £7 in the future isn't going to be worth what it is today, is it?

If all the freehold does is generate income of £7 a year, then its value is more akin to whatever bank balance would result in annual interest of £7. 

hmm yes I had thought of that... thank you though