I may have the possibility of buying the freehold of my leasehold flat. The leaseholder wants to sell it but has no idea of price. How would you work out the value?

I currently pay £150 a year in ground rent. Others pay next to nothing as my lease was renewed when I bought the flat.

2 comments

  1. Is it a stream of endless fixed payments?
    If it’s £100 per annum you can divide it by a reasonable interest rate. So at 5% interest it could be
    100/.05=£2,000

  2. There’s an official calculation for this, example calculators here [https://www.freeholdcalculator.com/freehold_choose.php](https://www.freeholdcalculator.com/freehold_choose.php)

    Although of course if you are doing this informally you might want to discuss outside that framework … but the freeholder’s solicitor may point out that they are selling themselves short.

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