Freehold Purchase for a house

Dunvegan111

Hi, Would anyone know what the cost would be to buy a freehold on a house worth around £260k and has 11 years left to run on the leasehold

Grizebeck

Ask the freeholder.....

eddddy

Grizebeck said:

Ask the freeholder.....

You could ask the freeholder - but they can quote any price they like, for example £250k, £500k, £1m, £2m etc.

(Or they could ignore your question and not answer.)


It's probably more important to know what sort of amount a tribunal would set the price at - if you used your statutory right to buy the freehold.


The problems include...

• There are 2 valuation methods which could give very different results - it depends which method applies to that specific property

• You would need a lot more information before you could calculate either of the valuation methods. (For example, is £260k the value of the freehold property - or the leasehold property with 11 years remaining?)

The 2 valuation methods are explained here: https://www.lease-advice.org/advice-guide/leasehold-houses-valuation/



FWIW, if £260k is the price of the leasehold house with 11 years remaining - I suspect that buying the freehold might cost hundreds of thousands.

Dunvegan111

Thanks for the feedback, I forgot to mention I asked the freehold landlord for a cost to buy it and he quoted around 50k. I just wondered if anyone had any experience of this and whether 50k sounds about right or a bit dear?

eddddy

Dunvegan111 said:

Thanks for the feedback, I forgot to mention I asked the freehold landlord for a cost to buy it and he quoted around 50k. I just wondered if anyone had any experience of this and whether 50k sounds about right or a bit dear?

It sounds super-cheap, based on the limited information you have provided.

loubel

Agreed. With 11 years left the lease would be largely worthless so £50k to buy the freehold would seem a bargain!