Company offered me the chance to purchase my property freehold? What's your opinions? Should we buy?

daveyjp

I wouldn't respond to a cold letter drop (especially one where the asking price looks completely OTT, but without lease details it may not be) and go direct to the freeholder with a request to purchase the freehold.

eddddy

I'd imagine that the freeholder has instructed an estate management company to deal with this, because they don't want the hassle of dealing with leaseholders themselves.

So I'm not sure that the freeholder would be too impressed by somebody trying to bypass their agent by contacting them direct (and doing a cold letter drop!). I suspect they'd just pass the letter on to their agent anyway.


I think it's unlikely to be a scam (i.e. an imposter telling fibs). The address on the letter matches the company's registered address, the email address matches the company's website domain, and the phone number matches their PRS registration.

TBH, in the OP's position, I'd probably try phoning the company to ask my lease length. That might give me something to work with, until I get official confirmation from elsewhere.

born_again

eddddy said:

I'd imagine that the freeholder has instructed an estate management company to deal with this, because they don't want the hassle of dealing with leaseholders themselves.

So I'm not sure that the freeholder would be too impressed by somebody trying to bypass their agent by contacting them direct (and doing a cold letter drop!). I suspect they'd just pass the letter on to their agent anyway.


I think it's unlikely to be a scam (i.e. an imposter telling fibs). The address on the letter matches the company's registered address, the email address matches the company's website domain, and the phone number matches their PRS registration.

TBH, in the OP's position, I'd probably try phoning the company to ask my lease length. That might give me something to work with, until I get official confirmation from elsewhere.

But then when they say this is the account to pay. That is when the scam kicks in.

So OP asking freeholder is a good idea, as they can then confirm that this company are acting for them.

FrankFalcon

UPDATE...

I wrote to them asking the length remaining.  They replied telling me it was over 800 years! I then replied by offering them £500 all in.  They replied telling me it was non-negotiable.  So, I guess by the comments herein the general consencus is that I should buy.

eddddy

There are 2 ways to buy the freehold of a house - the statutory route and the informal route.  You are currently following the informal route.

If you followed the statutory route...

• the price for the freehold would probably be about £50 to £100. (So that's the money the freeholder gets.)
• the fees you have to pay to solicitors and valuers could be around £2k

The informal deal you're being offered is

• the price for the freehold is £1,100 (So that's the money the freeholder gets.)
• the freeholders legal costs are £540
• your legal costs might be £500

So it's up to you how you want to play it. The cost to you is about the same either way - but the freeholder is much better off if you take the informal deal. (I expect the freeholder did the calculation above before sending you the letter!)


The government have been talking for years about changing the law, so that you won't need to pay solicitors and valuers £2k in fees for the statutory route. So maybe there's an argument for holding on to see if that change in the law actually happens.


Or maybe if you start the statutory process for buying the freehold, perhaps the freeholder will cave-in and accept  £300 or £500 or whatever - instead of getting £50 to £100.