Buying Freehold. Loft Development Potential Argument

[max1234]

Hello,

I’m hoping somebody knowledgeable and experienced with buying freeholds could help me with this;

Scenario is: the block is 2 maisonettes (purpose built), ground and first floor. The first floor has loft space above it.

When serving notice to buy the freehold of the block, what points should I consider to argue that the loft doesn’t have development potential and that its value is only that of storage?
I can only think of
1)The loft is ONLY accessible via the first floor flat, there is no way it could be a separate premises.
2)The street is made up of about 100 such blocks of 1 ground and 1 first floor, and no other first floor flat has developed the loft.

Is there anything else I should investigate and argue?
Thanks

[jeffrey]

Do you own the upper flat (leasehold) and does the lease explicitly include the loft?

[max1234]

Hi JEFFREY

Yes we collectively own ground and first. The first floor flat lease does not specify if the loft is included or excluded - it doesnt really mention it.

My guess is that as the flats were built 50 years ago the loft was just a space where the water tanks sat feeding both flats.

[jeffrey]

That's too vague, of course. If the explicit definition of the demised premises does not include the loft, it's not demised unless s.62(2) of LPA 1925 applies. For this purpose, 'conveyance' includes 'lease'.

62(2). A conveyance of land, having houses or other buildings thereon, shall be deemed to include and shall by virtue of this Act operate to convey, with the land, houses, or other buildings, all outhouses, erections, fixtures, cellars, areas, courts, courtyards, cisterns, sewers, gutters, drains, ways, passages, lights, watercourses, liberties, privileges, easements, rights, and advantages whatsoever, appertaining or reputed to appertain to the land, houses, or other buildings conveyed, or any of them, or any part thereof, or, at the time of conveyance, demised, occupied, or enjoyed with, or reputed or known as part or parcel of or appurtenant to, the land, houses, or other buildings conveyed, or any of them, or any part thereof.

[max1234]

So are you saying that if it is not explicitly included or excluded, then it could be in my favour when aquiring it as part of the freehold?

[jeffrey]

No. If it's not demised, it's undemised- which inflates the f/r's value.

[max1234]

Ok.

So the process is likely to include negotiations for the loft space.

Its loft space that can be made into an additional room for the first floor flat but it could never be a seperate flat.

How is the freeholder likely to value this? If it was agreed that it could only be an additional room, are they still likely to seek some compensation for it? And how is that compensation value determined, generally.

[Richard Webster]

I'm not sure there is any point in getting into arguments about the loft space unless and until the freeholder claims there is some extra value in it.

If he doesn't expressly claim anything like that why even bring it up - and give him ideas?

If you buy the freehold collectively you will get the freehold of the loft space, which is what you want, isn't it?

[Paulus]

I'm not sure there is any point in getting into arguments about the loft space unless and until the freeholder claims there is some extra value in it.

If he doesn't expressly claim anything like that why even bring it up - and give him ideas?

If you buy the freehold collectively you will get the freehold of the loft space, which is what you want, isn't it?

Not if the landlord creates a lease of the loft space which is what they will likely do if they want to create extra value for it.

[Richard Webster]

The freeholder could create a lease of the loft space but if it doesn't have planning permission as a separate flat and has not been added to any individual flat then its extra value will be questionable. As I said before I would worry about the point if the landlord raises it, but not before!

[Markonee1]

I second the idea of keeping quiet about the loft.
When I purchased the freehold of our block, I ended up with a pair of pitched-roof attics that rest on walls that total 56ft by 26ft, 13ft to the ridge.... At no cost :D