Freehold valuation?

To be fair, the freehold on a multiple lease property can only be valued in two ways:

1 How much is someone prepared to pay for it? 2 How muchis the freeholder prepared to sell it for?

It is unlikely that any plc would be interested in selling - the leases can be renewed in 70 years netting them another £300,000 or so straight away! That said, if you could convince them to sell you would need to account for the loss of income from the ground rent - and the future loss of lease income - - - which you could discount for their receiving the funds today. £150,000 is not unreasonable given the short term on the leases.

However, the freehold might just be a long term acquired asset and hence they would be prepared to sell it to you for a nominal sum - £100 is not impossible!

I bought our freehold in a similar situatin to yourself for £1.00 a while back, so you never know!

MC

There is a reasonable calculation for this.

someone like

will advise.

This is irrelevent if the freeholder is statutory obliged to give the tenant first refusal (which they are)

They don't have a choice in this.

A lease renewal value has no relationship to the value of the property. It is related to the difference in value with/withouit the lease, this could be zero (it won't be)

You would yes. This is 6300 current value paid over 70 years. A lump sum payment would be discounted because it is paid in one go.

70 years is not a short lease. 150 K is way over the top 15K is nearer the appropriate figure.

it is.

They cannot refuse to sell to a qualifying tenant, prepared or otherwise.

tim

for a price. will advise for free and provide a database of actual prices calculated for varying situations.

Daytona