Mike in Worthing

Registered with Property118.com
Tuesday 17th December 2019

Latest Comments

Total Number of Property118 Comments: 16

Mike in Worthing

10:35 AM, 16th September 2021, About 5 days ago

Freehold - what's it worth?

As a guide, I suggest "The Survivor's guide to Buying a Freehold (Lawpack ISBN9781905261109) As previous posts have said, it's not straightforward. The latter book has relativity tables (to value lease extensions) and present value tables (to buy out ground rent which the freeholder is currently entitled to.)
At 60 years remaining, the cost of enfranchisement is about 15% of the 999-year value, so this will be substantial as you have 7 unextended leases.
Much more important though is the consensus amongst the other leaseholders. Getting agreement of the required 51% and raising the money can be a nightmare.
Even after enfranchisement bigger problems occur. Prioritization of repairs can be a source of fierce debate. Some lessees think a pot-holed driveway is more important than leaking garage roofs (yes, really - I speak from experience!)
You need to consider the whole process. Have you a majority to start? Can you raise the money? Have you lessees willing to become directors? Are you confident that the block will be managed properly once the freehold is yours?
The most difficult part of the valuation is in its apportionment amongst the lessees. Those with extended leases have already paid once, they may be happy with the status quo.... Read More

Mike in Worthing

8:39 AM, 25th August 2021, About 4 weeks ago

Dropped a pole on the neighbour's roof?

I'm sorry but you are liable. The law is clear on this. You are the Principal, the scaffolder is your Agent. A principal is always liable for the actions of his/her agents. This is to ensure that if your scaffolder disappears, your neighbour can look to you for compensation.
You therefore have to negotiate with both parties, hopefully coming to an agreement.... Read More

Mike in Worthing

8:04 AM, 6th August 2021, About 2 months ago

Buyers lender demanding I instruct a solicitor?

Hi Judith
Don't put up with this nonsense for a second. I always do my own conveyancing and had a similar experience 13 years ago. If the buyer's lender insists on something, it's between the two of them and not your problem.
I put my foot down and said fine - I'll put a clause in the contract that the purchaser pays my legal costs. I suggest you do likewise. In my case they backed off immediately. You can always say you'll complain to the SRA as well.
Hope this helps.
Mike... Read More

Mike in Worthing

12:52 PM, 2nd August 2021, About 2 months ago

One or two estate agents?

Forget multiple agents. Try a RAMPED commission if you can. Say property is worth £500k. Nothing for the first £400k, then 2% for the next £50k, 5% for the next £25k, 10% for the next £25k etc - you get the idea.
Kills overvaluation stone dead. Worked wonders when I used this system, many agents wouldn't accept it though.... Read More

Mike in Worthing

18:13 PM, 29th July 2021, About 2 months ago

Section 20 notice required even if we have the money?

Section 20 must be complied with when you SPEND the money, not when raising it.
As Lana Y rightly advises, follow the procedure.... Read More