Sell My House Online is a professional buyer of freehold ground rents. If you want to sell ground rents, then we can help.
We buy any type or size of ground rent throughout the United Kingdom. If you have a large portfolio or development, a small house conversion or even short leases, we are keen to make you a cash offer today with no obligation.
We are very well versed in the valuation and purchase of freehold ground rents and know the extensive legislation that applies to leasehold properties. Owning residential freeholds carries the labour intensive burden of collecting small sums of ground rent and the management of common parts.
Once a price is agreed for ground rents, the qualifying leaseholders are given a notice period of 2 months in which they can elect to purchase the freehold themselves which is known as enfranchisement . Lessees can only purchase the freehold at the price you have agreed to sell, therefore either way the freeholder can obtain the market price which makes this a simple way of selling ground rents.
We can provide you with guidance on the legislative requirements of the sale process, and will also take care of serving the statutory notices if required.
The unexpired term of a lease can vary drastically and the amount of years remaining on leases is critical to the valuation. A few leases can ve very long – typically 999 years at issue. In such cases, the freehold is valued like a long term bond, with ground rent and ancillary income instead of the coupon. But most leases are issued for 125 or 99 years and gradually become ‘short’ as the years pass.
Valuation of ground rents
- A multiple of the current annual ground rent payable, which will depend on the outstanding term of the lease.
- any future scheduled increases in the level of ground rent
- market interest rates
- the probability of default if the rents for individual flats etc. are small, the cost of collection.
- The net present value of the reversion, i.e. at the end of the lease the freeholder (to whom the rent is paid) will probably be fully entitled to the property, so the shorter the lease the greater the reversion value.
- Any attributable “marriage value” (a substantial sum designed to compensate freeholders for their loss of interest when a lease with less than 80 years to run is extended).