Advice Please on Freehold Purchase

[Neil C]

I own a house which is currently leasehold with ground rent of £20pa but which now has only 40 years remaining on the lease. Back in 1993 when the house was probably worth around £90k the freehold was on offer for £1,300; now the freehold owners want £20k and the house is worth around £230k.
I don't know much about freehold values but does this sound reasonable? - it seems exhorbitant to me in relation to the value of the house compared to what was offered 16 years, ie. it has gone from 1.5% to 8.5% of the house value.
Is there any way I can challenge this price or should I just make them an offer? Alternatively am I entitled to request / buy an extension to the lease.
Many Thanks in advance

Neil

[kims88]

The freeholder knows that you will be starting to worry about the lease length. They'll know that you may struggle to sell the property with such a short lease. And that's why they are charging such a ridiculous amount. They are in the box seat so to speak.

I'm not an expert on this subject, but I am sure than any price charged by the freefolder has to fair and reasonable. Whether 20k is fair is open to debate - sound high to me. To extend your lease, check here for more details How To Extend Your Lease

[JustinN]

If you want advice on values (whether it is the purchase of the freehold or the extension of your lease term), I suggest you get advice from a valuer who specialises in "leasehold enfranchisement" valuations