Owning your own home

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Sumo in reply to @Howard

They've set it at 240k or the sum of the ground rents x 24, whichever is lower. I think there's 55 flats so I think they've worked them out to be the same £. No idea why it's 24 x the ground rent.

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Sharkstar in reply to @Sumo

If that 240k is per flat it’s insanely high, if it’s across all flats in the block it’s a bargain. The value of the freehold is usually based on the net present value of the future cash flows from the ground rents across the block. If you look at your lease you can get an idea of what that might be for your flat at least, then multiply by the number of flats. You need to take into account any ratchets towards the end of the lease term.

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Sumo in reply to @Sharkstar

Yeah I assumed the cost was per flat but actually I think it's for the whole freehold. Its a strange amount because there's 55 flats, 20 are owned by Hyde for affordable housing, that leaves 35 flats so why are they asking for 24 x total ground rent.