Fair split of purchase price of a freehold title?Make Text Bigger
I have a leasehold/freehold question and appreciate the input and thoughts of the many here.
I own a 2 bed first floor flat, the 3 bed flat below is owned by another landlord but is significantly larger therefore of a higher value than mine. There is 85 years left on the lease and the freeholder has given notice that he intends to sell the title. The other owner and myself have agreed that we should buy the title between us however we differ on value/cost/% of ownership as his flat is considerably larger/valuable than mine. My question then relates to the percentage share we should each own and therefore the percentage we should each pay for?
In these circumstances, do individual flat owners generally allocate an equal freehold share each regardless of size/value of property or should we each own a share of the freehold relative to the size/value of our properties? In this case I am thinking along the lines of 40%/60% split.
My rational is if for example we took the scenario to extremes and my property was a studio and his was a mansion would we have an equal share each of the title and therefore cost of purchase? After all, when individually applying for a lease extension the marriage value formula is based on the property value which then I assume dictates the value of the actual freehold title/reversion itself?
Lastly, to further muddy the waters, the landlord below has future plans create an additional self contained studio within his exiting layout and create a new title and lease for it, which I don’t have an issue with, but this fact again as fuel that we should not be paying for and owning equal shares. The amount being asked for the freehold is circa £10k plus fee’s so a 40/60% split represents a considerable saving for myself.
Thanks in advance
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