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Advice Please on Freehold Purchase

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  • Advice Please on Freehold Purchase

    I own a house which is currently leasehold with ground rent of £20pa but which now has only 40 years remaining on the lease. Back in 1993 when the house was probably worth around £90k the freehold was on offer for £1,300; now the freehold owners want £20k and the house is worth around £230k.
    I don't know much about freehold values but does this sound reasonable? - it seems exhorbitant to me in relation to the value of the house compared to what was offered 16 years, ie. it has gone from 1.5% to 8.5% of the house value.
    Is there any way I can challenge this price or should I just make them an offer? Alternatively am I entitled to request / buy an extension to the lease.
    Many Thanks in advance

    Neil

  • #2
    The freeholder knows that you will be starting to worry about the lease length. They'll know that you may struggle to sell the property with such a short lease. And that's why they are charging such a ridiculous amount. They are in the box seat so to speak.

    I'm not an expert on this subject, but I am sure than any price charged by the freefolder has to fair and reasonable. Whether 20k is fair is open to debate - sound high to me. To extend your lease, check here for more details How To Extend Your Lease

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    • #3
      If you want advice on values (whether it is the purchase of the freehold or the extension of your lease term), I suggest you get advice from a valuer who specialises in "leasehold enfranchisement" valuations
      This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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