V Acquisition of Freehold Share Price [leasehold] [neighbour]

Q: I hope someone can help me here .

I about to put my flat on the market. I own a share of the sale. I have a chance to sell my share to my neighbor (there is only 2 of us) so why would I sell my apartment lease if it would happen. I have no decisions on this and will discuss with local brokers to do. I was wondering if anyone an opinion on the difference in price between marketing lease (99 years lease) versus the proportion of fully owned. The flat, in my view, be sold for 175K . How much extra would be added to the SOF? Am I getting people through the door and it will be much less attractive lease only sales?

Thanks


A:Charley, I know I answered a recent post of yours where you asked this very same question & the answer is still the same. The flat will achieve a higher price with sof as opposed to only with 99yr lease & it will be much more attractive to purchasers.

Some buyers may even possibly be put off by having the sole freeholder living on top of them.

Thanks, yes you did. Was just searching for some more opinions!


A:Charley, I know I answered a recent post of yours where you asked this very same question & the answer is still the same. The flat will achieve a higher price with sof as opposed to only with 99yr lease & it will be much more attractive to purchasers.

Some buyers may even possibly be put off by having the sole freeholder living on top of them.


A:If I were you I would sell the SOF with your flat. Otherwise, the new owner will effectively be at the mercy of his when it comes to such things as maintenance and insurance.

Also, although 99 years is a decent length, the cost of extending leases has recently increased significantly.

For a 175K flat, I would say that SOF would add around 5K to value, but it does alter from case to case.


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