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Cost of buying freehold

Looking at buying the freehold of my flat with my neighbour. Both flats are worth about 450k and have 122 years left on the lease. We pay £100 /year ground rent. Wanting to get rid of unhelpful freeholder but struggling to work out the total cost involved. Have been advised it would cost between 3-5k per flat but looking for some advice.

Asked on Jan 25 2014, General in London | Report content

Answers (1)

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  • There are two factors to the valuation: The present value of the future ground rents (eg 122years at 100pa). The value of the 'reversion' that is the value of the property to the freeholder when the lease expires. (eg, very roughly, the value of 450,000 in 122 years from now.) Assume an interest rate of 4% and that would be about 6,000 per flat, at a 5% interest rate about 3,000 per flat. But you realy need proper advice on this. See lease advice website.

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    Answered on Jan 26 2014, Report content

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