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burnleymik
Posts: 1,391 Forumite
Hi all, we put an offer in on a property at the start of May. The property is a leasehold property and we enquired with the estate agents regarding the lease before we viewed the property. They spoke to the owner who had a letter offering them to buy the lease for £XX. We thought that was quite reasonable, viewed the property and put our offer in and stated that the offer was made with the caveat that we could buy the freehold.
Anyways our solicitor suggested our best option would be to ask the current owners to purchase that lease on our behalf and we would cover the costs, including legal fees, which we were happy with.
it's taken a long time to get an answer, but the current owners are refusing to do that, there wasn't a reason and I suppose they don't have to give one.
Our solicitor is now in the process of contacting the Managing Agents to enquire as to if we could purchase the freehold, with a guaranteed future price, and it's cost. (We have been informed you cannot purchase the freehold within 2 years of buying the property).
If the price comes back significantly more, would it be unreasonable to ask to renegotiate the price to reflect this, as we did clearly state that our offer was based on us wanting to own the freehold?
Anyways our solicitor suggested our best option would be to ask the current owners to purchase that lease on our behalf and we would cover the costs, including legal fees, which we were happy with.
it's taken a long time to get an answer, but the current owners are refusing to do that, there wasn't a reason and I suppose they don't have to give one.
Our solicitor is now in the process of contacting the Managing Agents to enquire as to if we could purchase the freehold, with a guaranteed future price, and it's cost. (We have been informed you cannot purchase the freehold within 2 years of buying the property).
If the price comes back significantly more, would it be unreasonable to ask to renegotiate the price to reflect this, as we did clearly state that our offer was based on us wanting to own the freehold?
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It enriches those who receive it without making poorer those who give it.
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Comments
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The 2 year rule does not stop you buying - it stops you having the right to force the freeholder to sell. If the current owners have owned for 2 years, they can force the freeholder to sell to them, and that can assist them in agreeing the price.
If the price the freeholder offers you is higher, I would insis on a purchase price reduction, as well as a guarante from the freeholder.0 -
Thankyou G_M.
Whilst we are waiting for a reply from the managing agent, how do they calculate the value of the freehold? Can they just pluck a number out of the air?A smile costs nothing, but gives a lot.It enriches those who receive it without making poorer those who give it.A smile takes only a moment, but the memory of it can last forever.0 -
burnleymik wrote: »Whilst we are waiting for a reply from the managing agent, how do they calculate the value of the freehold? Can they just pluck a number out of the air?
Yes - in the circumstances you describe, they can pick a number out of the air.
And you can make a counter offer, etc.
What you're currently doing is often called an 'informal negotiation'.
However, there are circumstances where the leaseholder can 'compulsorily purchase' the freehold at a price that is calculated by statutory formulas. It may be cheaper this way.
But either the seller must start this process, or alternatively, you must wait 2 years before you can start the process.
Here's some info about it: https://www.lease-advice.org/advice-guide/houses-qualification-valuation/0
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