What to do with a useless freehold to a block of flats?

[Jeremy JC]

Slightly odd situation - I'd be grateful for Hubbers' views:

 

A friend has inherited the freehold to a block of flats which his father built.

 

The leases are all 999 years from the early 1970s and provide for an annual ground rent of £15 per flat.  With 24 flats this totals £360 per year.

 

There is no provision in the lease for increasing the ground rent, so as things stand it will just continue at that level.

 

Not sure who manages the block, but it is not something my friend is interested in taking on.

 

He has asked whether there is anything he can do.  Over time he sees the income as more trouble than it's worth and, unless something can be done to increase the ground rent, he would rather just get rid of the freehold.

 

Any thoughts?

[Darren McNeill]

Put it into auction. He may not get a huge amount of money, but either way it will clear him of his responsibilities.

 

Companies seem to make money more through fines & associate admin fee's for people who do not pay promptly each year. There is some money to be made from these, but my knowledge is by limited.

 

it was something that my solicitor brought up when I was purchasing my current project. He wanted to ensure that the ground rent was fully paid so that there we no fines that could be levied upon myself, as he knew of the leasehold company and had dealt with them in the past.

 

Hope this helps.

 

Darren

 

 

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[Fiona Parker]

Hi.

Google Bernie Wales.....expert on leases. 

 

[paulrybak]

Allsop auctions regularly sell lots like this, you may be surprised at what some will pay for a lot such as this.

[Jeremy JC]

Many thanks for all the suggestions, that's really helpful.

[Fiona Parker]

2 hours ago, russellpeters said:

 

This Bernie Wales?

Yes

[BernieWales]

Hi. Bernie Wales here.

 

You don't mention where the property is - but if it is conveniently located for our management portfolio, we may be prepared to take it off your hands.

 

In order for me to assess its value, please send me the HMLR title deed and plan ... and a copy of one of the leases.

 

Best wishes.

[BernieWales]

I don't think I've heard from you ...

[Jeremy JC]

I've passed on to my friend the very helpful information people have posted on this thread.  He did not know there might be the possibility of selling the freehold.

 

He is considering what to do but is in no great hurry as this is not a particularly pressing issue for him right now.

 

Many thanks to all for the feedback.

 

Jeremy

[BernieWales]

Can I ask ... where is the property?

[Jeremy JC]

Not entirely sure.  Think it's up North - I want to say Leeds or somewhere in that direction, but don't know if that's right.