Freehold valuation survey negotiations

PalmTreeBreeze

Our Freeholder has had a valuation survey carried out on our property, for the purpose of collective enfranchisement.
2 of us Leaseholders are happy with our valuations, 1 isn't and wishes to negotiate.

Do we need our own valuation surveyor to do this on our behalf? The LH has offered an amount but the FH says we need our own? (They own the 4th flat). We can't negotiate privately?

Thanks

eddddy

Are you doing this formally - i.e. Have you served notice on the freeholder under the Leasehold Reform Housing & Urban Development Act?

Or are you doing it informally - i.e. The freeholder approached you and asked if you wanted to buy the freehold, or the leaseholders approached the freeholder and asked if they would sell?

RichardSu

I fully recommend your own valuation to ensure you are paying the correct amount. 

PalmTreeBreeze

The FH approached us, so informally.

eddddy

PalmTreeBreeze said:

The FH approached us, so informally.

So then there are no rules - it's just down to negotiation. So...

• The freeholder is free to say "I'm not going to discuss this until you've hired a valuer"

• And the leaseholders are free to reply "We're not going to hire a valuer"

... and one side will have to give in eventually, otherwise the freehold won't be sold.


It's interesting that the freeholder is saying you must get a valuer. 

(As a complete guess - that sounds a bit like somebody is annoying the freeholder by making silly offers. So the freeholder wants the leaseholders to hire a valuer, to tell them their offers are silly.) 

Do you have a feel for what the freehold is worth?

PalmTreeBreeze

eddddy said:

PalmTreeBreeze said:

The FH approached us, so informally.

So then there are no rules - it's just down to negotiation. So...

• The freeholder is free to say "I'm not going to discuss this until you've hired a valuer"

• And the leaseholders are free to reply "We're not going to hire a valuer"

... and one side will have to give in eventually, otherwise the freehold won't be sold.


It's interesting that the freeholder is saying you must get a valuer. 

(As a complete guess - that sounds a bit like somebody is annoying the freeholder by making silly offers. So the freeholder wants the leaseholders to hire a valuer, to tell them their offers are silly.) 

Do you have a feel for what the freehold is worth?

Well we are going to hurry this along by getting a valuation, that way all options are on the table. We have the FH valuation report so we have a good guide already

eddddy

PalmTreeBreeze said:

eddddy said:

PalmTreeBreeze said:

The FH approached us, so informally.

So then there are no rules - it's just down to negotiation. So...

• The freeholder is free to say "I'm not going to discuss this until you've hired a valuer"

• And the leaseholders are free to reply "We're not going to hire a valuer"

... and one side will have to give in eventually, otherwise the freehold won't be sold.


It's interesting that the freeholder is saying you must get a valuer. 

(As a complete guess - that sounds a bit like somebody is annoying the freeholder by making silly offers. So the freeholder wants the leaseholders to hire a valuer, to tell them their offers are silly.) 

Do you have a feel for what the freehold is worth?

Well we are going to hurry this along by getting a valuation, that way all options are on the table. We have the FH valuation report so we have a good guide already

So you have the freeholder's valuation report.

Normally, it would have 2 or 3 or maybe 4 values...

• a 'best case' valuation that a tribunal might decide
• a 'worst case' valuation that a tribunal might decide
• and maybe a 'most likely' valuation that a tribunal might decide
• and maybe a valuation to start the negotiation at

Does the freeholder's valuation report have that? 


And presumably you'll show the freeholder's valuation report to your valuer, and ask them if they agree/disagree with it.

(Doing it that way will speed up the process, and it might reduce the 'negotiation fees' you have to pay.)