Freeholder low balls offer to buy me out. What do I do next?

[Behemoth]

lepetitoeuf said:

But you can't use that as a comparison starter point as it only applies to primary residences, I don't think they give you the 10% if it's an investment property.

It's not a compulsory purchase in any way shape or form.

[Behemoth]

lepetitoeuf said:

Really? You hadn't mentioned that

Maybe you should move this to the business forum rather than the homes forum.

I think if you read the full thread, you will realise this is not about compulsory purchase. It's about an offer on the table from the freeholder. I think compulsory purchases can only be done by government.

Since I'm asking for opinions on property valuation, freehold & leasehold isn't this the perfect place to discuss?

[ColinM50]

The value of the property to you is what you'd be happy selling it for and that's obviously not what the other people have offered you. So reject their offer as laughable. Don't give them a sensible figure for them to work down from, either tell them you have no interest AT ALL of selling, full stop. Or give them a stupidly high figure say four times what you've been offered already.

The cards are all in your hand, they have nothing that can hold over you and threaten you with. It's your property, they can't force you to sell. If their improvements on the rest of the building cause you loss, you have redress in law for that.

BTW, did you say why you don't want to buy their part of the building and do the redevelopment yourself? It can't be for money since theirs tons of cheap cash around for this type of project right now.

[Behemoth]

ColinM50 said:

BTW, did you say why you don't want to buy their part of the building and do the redevelopment yourself? It can't be for money since theirs tons of cheap cash around for this type of project right now.

Doing this is a possibility and some of us are interested. But we'd be talking about raising a very large sum of money. It's about 85K sq ft all together. It's not a small project. Where would be your first port of call to raise cheap cash?

[Baldinho]

PM me if you want a chat on what you can do. I'm on commercial prop side but can put you in touch with good advisers re potential value of your existing flat plus raising the cash if you want to do it yourselves.

[z4RRSchris99]

Behemoth said:

Doing this is a possibility and some of us are interested. But we'd be talking about raising a very large sum of money. It's about 85K sq ft all together. It's not a small project. Where would be your first port of call to raise cheap cash?

85,000 sqft in your location is going to cost you around £15/20m to develop, plus the site cost, but is probally worth £80m+ when done.

You will not get any finance without a serious track record of past development, and usually senior will want the debt covered by presales before you drawdown, so will need to be started with equity + mezz.