Buying freehold

[mummytait]

We own a buy to let property and are considering buying the freehold as the freeholders are insisting on charging �80 every six months to register the sub-lease. They now want �40 to give us a QUOTE for the freehold. Is there a generally accepted formula for calculating the freehold? or can they then quote us an outragous amount? The ground rent is �16 p.a. and I feel a bit ripped off!

[Ginger30]

Yes there is a formula - but in the end, I think it comes down to negotiation. There's an arbitration service. You would have to prove the landlord's being unreasonable, and then shell out to get the arbitrators on his back, but you can claim some of that back if you win, and I've heard they're pretty sympathetic to the leaseholder. I know this becuase I've got a dodgy landlord who tried to charge us a fortune. My recommendation is to keep records of everything and use the Leasehold Advisory Service for free advice.

[mummytait]

Thanks ginger. Will do.