Tweet
Appreciate some thoughts on this one!
I purchased me leasehold flat in April 2015. The block was built in 2010 and the landlord subsequently went into receivership. We understood that this was due to the prices being unrealisticallyhigh and unachievable. But marketing continued during this receivership and all flats have now been sold, last completion was on the last two months.
As such, and as we had been promised, the freehold has become available.There are 66 flats here with a ground rent of £250 pa each.
We had been told that the tenants have first refusal and the first approachwas via the managing agents of the block. The residents held a subsequent meeting to assess interest, after being given a figure of around £9100 per flat to buy the freehold, assuming a 51% take up. This was assuming an offer price on the freehold of around £300,000, although this was substantially more than we had been indicatedwhen we viewed to buy, everyone being given a figure of £2000 - £3000 per flat. We all understood that we could negotiate on that figure and as such wewere waiting to hear of an offer price.
The next thing we all received was a three page letter ( sent to everyone four times by the way ) laid out as the copies here on the attachments supplied. .
This is suggesting that we retain the opportunity to buy the freehold but the sale can only go to auction. Am I reading this right? I think we all felt that we would be offered the freehold at a price and collectively we had to agree and take it from there, but it now seems that we may collectively have to bid at auction?
All opinions on this matter will be gratefully received, we have a residents meeting in two days to discuss this very matter. Also, is there an established formula for calculating the offer price on the freehold?
Thanks in advance guys! :goodjob:
I purchased me leasehold flat in April 2015. The block was built in 2010 and the landlord subsequently went into receivership. We understood that this was due to the prices being unrealisticallyhigh and unachievable. But marketing continued during this receivership and all flats have now been sold, last completion was on the last two months.
As such, and as we had been promised, the freehold has become available.There are 66 flats here with a ground rent of £250 pa each.
We had been told that the tenants have first refusal and the first approachwas via the managing agents of the block. The residents held a subsequent meeting to assess interest, after being given a figure of around £9100 per flat to buy the freehold, assuming a 51% take up. This was assuming an offer price on the freehold of around £300,000, although this was substantially more than we had been indicatedwhen we viewed to buy, everyone being given a figure of £2000 - £3000 per flat. We all understood that we could negotiate on that figure and as such wewere waiting to hear of an offer price.
The next thing we all received was a three page letter ( sent to everyone four times by the way ) laid out as the copies here on the attachments supplied. .
This is suggesting that we retain the opportunity to buy the freehold but the sale can only go to auction. Am I reading this right? I think we all felt that we would be offered the freehold at a price and collectively we had to agree and take it from there, but it now seems that we may collectively have to bid at auction?
All opinions on this matter will be gratefully received, we have a residents meeting in two days to discuss this very matter. Also, is there an established formula for calculating the offer price on the freehold?
Thanks in advance guys! :goodjob:
Comment