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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 25358
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I own the freehold of a number of houses in a street in Warrington

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I own the freehold of a number of houses in a street in Warrington Cheshire that is leased to a company for 999 years since 1903' one leaseholder wants to acquire both the head lease and the freehold of one property, how can I obtain a valuation on this?
Submitted: 3 years ago.
Category: Property Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I clarify with you please do you also have an interest in the company to which the properties are leased or is the company a third party entity to you?

Customer: I have no interest In the company wishing to purchase the freehold
Joshua :

Sorry for the delay in reverting to you. One of my colleagues locked the thread and I could not reply. Do you know if the company is prepared to sell the head lease or is the tenant seeking to use his statutory rights to acquire the freehold?

Joshua :

In terms of valuing the freehold I can likely give you a basic valuation figure for the meantime if you can advise me the approximate value of the leasehold property as it stands and advise me the current level of ground rent?

Expert:  Joshua replied 3 years ago.
Hello
I understand you are having difficulties with the chat window. Sorry for any inconvenience. I have switched to a question and answer format. I hope you can now read the above. Please let me know if there is anything you would like me to repost.

I look forward to hearing from you.
Customer: replied 3 years ago.
The situation is that I own the freehold of 32 properties along one side of Norris Street ,Warrington and one property in Hallfields Road, Warrington,these are subject to a head lease with the Compton Group in S Wales, I receive £40per annum for this entire block and the property in Hallfields Road is occupied by a pharmacy retailer, they wish to acquire the freehold and be released from the head lease.
I hope this is clearer and await your reply
Roger
Expert:  Joshua replied 3 years ago.
Many thanks. In terms of valuing the freehold I can likely give you a basic valuation figure now for the meantime if you can advise me the approximate value of the leasehold property of the tenant in question as it stands.
Customer: replied 3 years ago.
I have asked a local agent and he says that as the property stands it should have a value of around £95000 although a full survey would be needed to give a more accurate figure, as regards XXXXX XXXXX rent I don't have an individual figure for this property as I receive £40 per annum for all the properties together as stipulated in the agreement from 1903
Roger Hatton
Expert:  Joshua replied 3 years ago.
Many thanks. Based on these figures, the reversion interest in the freehold is likely to only have a nominal value unfortunately. In its most basic terms, the calcuation of a freehold value is based partly on the value of the ground rent you receive and how long it will be before a lease expires - obviously the less time remaining on a lease and the higher the ground rent, the more a freehold reversion would cost.

Because there is so long remaining on the lease and the ground rent for the individual property equates to less than £2/year, this will impact on the value of the freehold so heaviily so as to make its value nominal.

However if yourefuse to cooperate this would force the tenant to undertake the statutory route which would likely cost him at least £1500 in fees so it is possible you could negotiate a high three figure or low four figure sum on the basis it is less hassle for him to accept rather than deal with exercising statutory rights.

To obtain a precise valuation - though I would suggest you only do this if the tenant pays the fee to the surveyor, you can ask a leasehold surveyor to value the freehold reversion for you. There are many specialist leasehold surveyors that specialise in this type of valuation.

Is there anything above I can clarify for you?
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 25358
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
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