Buying the freehold – last minute show stopper
We own a leasehold flat in a block of 5. Our Freeholder has always been absent and a year ago all flat owners started the process to purchase the freehold. We managed to prove to the Crown that attempts to establish a freeholder have proven unsuccessful and we were given the go ahead to apply for the vesting order. We appointed a Surveyor to value the freehold and were advised about £50k. At this point 3 of the 4 owners wanted to proceed but the 4th owner dropped out (they own 2 flats).
Our application was held at a tribunal and we were advised that the valuation was inaccurate and they value the freehold at £100k!!! We are now looking at funding either £33k, £50k or £100k ourselves dependent on the remaining owners wish to proceed.
My questions are:
How on earth can the Tribunal value it at £100k, this is punitive for leaseholders to purchase and seems to be greedy, as the cash goes to the Crown?!
How did the valuer get it soooo wrong, and I am loathed to pay his bill for poor information.
Who can I approach to get the funding of this freehold?
Many thanks
Emma
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Newham Council, Licensing and Planning
Member Since July 2015 - Comments: 154
12:09 PM, 10th September 2015, About 11 years ago
Reply to the comment left by “Leasholder 947 ” at “10/09/2015 – 09:54“:
I would be more inclined to see how many of the leaseholders in the flats you could get to join in the purchase. Set up a company with the leaseholders interested contributing to the purchase price of the freehold.
I don’t like what I would call external freeholders. They could charge for permission to rent the flat – lease allowing. They will charge for lease extensions.