Rare opportunity to acquire shares in a company that owns the freehold interest in this prestigious block.
My client is a director, and a shareholder in a company that own the freehold of the popular Hyde Park residential building, Raynham, located on Norfolk Crescent W2. He is also the owner of 13 leasehold titles in this building and is looking to sell these titles for the flats. The deal will include his proportionate share in the company that own the freehold of the building. Each of the long 999 year leases has an under lease which are now reversionary having on average just under 70 yrs left.
In total, there are four directors in the company that own the freehold to the block. The majority of the shares in the company will be owned by other leaseholders of flats in the building, although my client has by far the largest individual shareholding. Percentage wise, his percentage of shares in the company would be equal to the number of flats in the whole block (77) divided by the number of flats on which he has 999 year leases on (13) - so ultimately, his share in the company is almost 20%.
All flats in the back block are subject to long leases which existed when the 999 year leases owned by my client were granted, and what is being sold are these 999 year reversionary leases at a peppercorn rent.
My client acquired his interest as part of an enfranchisement of the block acting as a "white knight" and bought the 999 year leases and relevant shares in the freehold of the flats, whose leaseholders did not want to participate. What is being sold is the 999 year reversions on the existing leases of the flats for which the client has leases and the related shares in the freehold company, which also carries with the shares a proportionate share of any other assets of the freehold company and any income from those assets.
If you see the sheet attached in the email, you'll see the deal comes with a proportionate share in ''other freehold interests’’; these would include, but are not limited to the following:
Approx. 30 parking spaces located at the front of the building. These parking spaces have an average value of £70,000.
An electrical substation and a flat in the building which is a rented out (the porters flat)
The small Norfolk Crescent park area in front of the building.
Attached is a valuation sheet of the 13 leasehold titles. The valuation was conducted this year by a RICS Chartered Surveyor. As you can see in the sheet attached, the surveyor valued the 13 titles to the flats at a total £1.432,000 This is the asking price but the vendor is open to offers.
This would undoubtedly be a sound investment with substantial long-term returns. The reason for sale is due to the fact that my client is of old age and has retired; he no longer resides in London and no longer has any interest in this investment. The financial incentives are evident; significant income can be generated from lease extensions, refurbishment fees, ground rent, parking spaces, insurance fees, maintenance and installation of electrical equipment etc.