Block of 6 flats (inc. 4 @ peppercorn rent)- value?

[Scotty3]

I own a block of 6 flats all let on 999 year leases 4 of which are let on peppercorn leases and 2 of which are let on £50 p a ground rents. The flats each (all) self-insure and self-manage. There is nothing for the freeholder to do except collect £100 a year. The block is in Bournemouth. Can anyone give an indication of how much a LVT might award if the leaseholders collectively enfranchise?

[sgclacy]

unless there is potential development value in the site (squeezing further flats in the roof or on the side) then it would be worth no more than £1500. I would be very confident on that point.

I have also assumed the ground rent does not rise dramatically at any time


The costs of getting to the LVT on a contested valuation would easily exceed £1500 so be prepared to offer more than £1500 to tie up the deal

[Scotty3]

Thank you.

[Maelich]

These responses seem to suggest some experience - I have been trying to find a downloadable or online formula or calculator that will let me work what the cost of purchasing a share of the freehold would be for a leasehold flat that I part own. Any suggestions please?

[jeffrey]

These responses seem to suggest some experience - I have been trying to find a downloadable or online formula or calculator that will let me work what the cost of purchasing a share of the freehold would be for a leasehold flat that I part own. Any suggestions please?

Quickest:
go to Leasehold Advisory Service website, and select appropriate bit where formulae (with worked examples) will pop up before your very eyes.

[Maelich]

Thanks - that site is helpful, but they don't provide the tables for calculating values at 5% yield or make clear where you get the figures from to calculate reversion on different terms...But it was definitely useful so thanks