Freehold Reversionary Interest Value?

Freehold Reversionary Interest Value?

11:30 AM, 22nd February 2015, About 9 years ago 4

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We own a leasehold flat in a reasonably new build development of three flats. When we bought we were assigned the freehold at no additional cost but the leases contain clauses restricting increases in ground rent etc. Freehold Reversionary Interest Value

We are now selling the flat, should we just include the freehold or sell separately?

What it the likely worth, ground rents are only £250 per year for three flats?

Thanks

Mike Duhig


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Comments

Mark Alexander - Founder of Property118

11:34 AM, 22nd February 2015, About 9 years ago

Hi Mike

Freehold reversionary interests tend to trade in auctions for around 15 to 20 times the annual ground rent. The variations are based on the lease length and the wording.

My gut feeling is that you would be better selling the package as you purchased it.

For good legal advice and a great quote on the conveyancing work associated with the sale please see >>> http://buytoletconveyancing.co.uk/
.

brian clement

0:01 AM, 24th February 2015, About 9 years ago

you will get a quicker sale and a better price selling with freehold. make sure the selling agent knows it is a leasehold freehold flat and this fact is high lighted in in the selling details.

Colin McNulty

9:43 AM, 28th February 2015, About 9 years ago

Reply to the comment left by "Mark Alexander" at "22/02/2015 - 11:34":

I watched an auction last year that happened to sell a £3,000 pa income freehold for a small block of flats; it went for £87k, 29x the rent!

philip allen

13:33 PM, 28th February 2015, About 9 years ago

Mark is spot on with the values. I've just been offered 5000 for my freehold with a GR of 250. That makes it exactly 20 x.

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