12:50 PM, 27th February 2015, About 7 years ago 5
1, Can anybody advise me how to calculate the fair price to pay for purchasing the freehold of a ground rent on one of my rental properties. The yearly ground rent cost is £10.00
I have asked the current leaseholder and he has said that he wants £650, he said that this would cover the legal costs for the conveyance and administration fee as well.
2, Does anybody know how the purchase cost is made up? ie conveyance cost, application administration fee, and then the value of the freehold itself. I have read that the value of the ground rent can be valued anywhere from 9 x ground rent charge to 25 x ground rent charge.
3, If I purchase the freehold do the title deeds at the land registry get updated?
4, Do I need the permission of my mortgage provider to purchase the freehold?
5, Does my mortgage provider get notified if I purchase the freehold by the land registry or some other person?
6, Can I force the current freeholder to sell the freehold to me?
7, I seem to remember reading on this web site that if you purchase the freehold of a mortgaged property that the lender can then take action to force you to redeem your mortgage and any other mortgages that you have with them even if you are up to date with all of your mortgage payments. Not sure how true this is.
All help is greatly appreciated.