Wanting to buy House freehold

[Dcannonball]

I was told to use this forum as some of you know more about the technicalities of freehold calculations. So just hoping some of you can help me. After buying my house Nov06 I have now qualified for buying the freehold. I have just received a letter from the owners solicitor stating they are willing to accept £8500 together with legal costs and valuer charges.

(House info: Mid terrace 3 bed in birmingham, Lease term is 99yrs May 1st 1987. I also know you will need to know the Rateable Value of the property when the term started and its Rateable Value on 31 March 1990 but not sure where to find that info?)

I know that the previous owner sold the freehold at the time of selling the house to me and the price of the house was £105,000 at the time. But having the house valued recently it has been valued at £80,000-90,000. So in my mind the £8500 is much more than it should be even if the house was valued at the higher amount. Currently there is 76 years on the lease and the charges are £150pa for the first 20 years of lease, £250 for the next 20 years, £500 for the next 20 years doubling until the end of lease. So I'm not sure if these charges are the reason they are valuing the freehold so high? Could anyone enlighten me? Thank you

[quarterday]

I suggest you appoint a Chartered Surveyor specialising in this arcane area of valuation namely as required by the terms of the Leasehold Reform Act 1967, if your house is definitely a "house" rather than a flat or maisonette. Your landlord's figure is in my view very optimistic.

[Dcannonball]

Thanks quarterday and yes the property is a house... I did think the price was a bit over the top I guess I will have to bite the bullet and get a surveyor in. Or would you suggest I just make a counter offer?

[Gordon999]

You can look at previous LVT judgements of leasehold houses under "house enfranchisement" at www.rpts.gov.uk . Look records for Northern offiice and Bury.

LVT Ref: MAN/00BM/0AF/2008/0043 for house at 2 Bleasedale close, Bury
Ground rent paid at 5 pounds with 54 years remaining on lease
LVT Price : 5400.

[quarterday]

I suggest you take specialist advice. If you press me for a figure for an informal counter offer, I would suggest £3800 all inclusive!

[natt48]

I was offer £3800 for a 4 bed house, ground rent is £35 per annum in September 09 (there is 110 years left on the lease)

[quarterday]

if that is the case you should start at an ever lower figure, the reversion is remote.....

[Gordon999]

Thanks quarterday and yes the property is a house... I did think the price was a bit over the top I guess I will have to bite the bullet and get a surveyor in. Or would you suggest I just make a counter offer?

Contact LEASE with details of your house ground rents and present market value and request a free estimate . In the Bury case, the LVT calculation was based on 37% ( of the house value.)

[jeffrey]

I'd rarely recommend a leaseholder with <80yrs. unexpired to go ahead unassisted by a Chartered Surveyor. In my experience, the CS's fees are far outweighed by the price reduction achievable by surveyors' negotiations.