Offer to buy the freehold of my flat - should I take it?

WIAWSNB

Yawn said:

Thanks those comments are very helpful. 

Just to clarify - the freeholder has never done anything. The lease just states that upon request we need to show the freeholder proof that insurance has been taken out, and the few things that have come up since I moved in (fallen roof tiles, fallen TV aerial, outside lick of paint) have always been arranged between the leaseholders.

It's not been too conflictual - downstairs, being buy-to-let owners, have usually gone for cheaper rather than sustainable solutions, but they didn't say no when my roof was leaking...

I like the idea of delaying the decision until I come to sell, but it's not really one of the options. The choice I have basically is to buy my half of the freehold or let the downstairs owners buy the whole. (I believe I have the legal right to object, but in practice that won't help neighbourly relations!)  

Well, you're already doing pretty much what's required to be an effective FH!
In your position, I'd go for it. 
You currently appear to be running some risks - what if the lower LH failed to insure their property, and there was a fire? 

Yawn

eddddy said:

Then you should be able to convert the loft (e.g. to provide another bedroom) without having to pay a premium to anyone.


(Just to clarify - if the freeholder wants to sell the freehold to your neighbour, realistically you have no way of stopping them. Or if the freeholder wants to sell the freehold to you, your neighbour has no way of stopping them.)

Mine is actually the larger flat because they've already done the loft conversion. Downstairs is only a one bedroom, although they do have the garden.

I didn't realize they could sell without my permission. That's good to know, another reason why I probably should buy my share....

newsgroupmonkey_

Yawn said:

I own the leasehold of a two-bedroom flat, the upper half of a terraced house. There is about 80 years on the lease remaining, with an annual rent of 50 pounds. 

Downstairs needs to extend their lease and are keen to buy the freehold in the process (the previous owners of my flat extended before selling). 

They've been quoted £2,000 for the freehold (£1,000 per flat) and asked if I want to purchase jointly with them. (I have seen the offer letter.)

I'm trying to work out whether this is a) a good offer and b) whether any purchase makes financial sense.

Aside from the annual £50, we would save funds by taking out joint buildings insurance.

That said, I would expect to sell up in the next 2-3 years. I can see how the freehold could add value when I do move?

Any advice?

With only 80 years left on your lease, your flat is unmortgageable in most scenarios and you'd struggle to sell.

I'd bite their arm off for £1k.