To value freehold ground rents we first require the address of the freehold property so that we can obtain the leases from Land Registry. Using the leases together with other variables, our experts perfom a detailed appraisal of the freehold property.
Our expert team are highly experienced to deliver accurate appraisals of freehold ground rents. Our valuations are based on what you would likely achieve from a sale to a freehold investor. For a professional valuation to be used in any formal proceedings, you may need to contact a chartered surveyor.
Although we are not able to create or draft leases, we can assist freeholders or developers who require support with the terms that should be included in the lease, such as ground rents, rent review best practices, and key points such as repair obligations and service charges. In order to draft leases, we recommend employing the services of a qualified solicitor.
Our lease extension calculator has been formulated using current market data to give you the most accurate estimation of the premium payable. However, we cannot guarantee true accuracy and the results must not be relied upon or used in any formal proceedings or tribunal.
Marriage value is 50% of the difference in value between your property having a short lease (before renewing) and when the lease is extended. Marriage value comes into effect when the remaining lease term falls below 80-years, and will increase the premium to extend a lease as marriage value is added to the premium payable to the landlord.
You can obtain an estimate of the premium payable to extend your lease using our Lease Extension Calculator. For a formal valuation, you will need to employ the services of a chartered surveyor.
The amount that it costs to extend a lease is dependent on a number of different factors. This includes but is not limited to the number of years remaining on the lease, the amount of ground rent payable, and the value of the property. To get an estimate of the premium payable to extend a lease, use our Lease Extension Calculator.
A lease extension is an increase in the number of years that the leaseholder is entitled to live in the property before it reverts back to the freeholder.
A residential lease is a legal contract beween a freeholder (landlord) and a tenant (leaseholder). A lease sets out the rights, obligations and responsbilities of both the freeholder and the leaseholder.
Yes, as it costs money to pursue tenants that are in arrears. If you are forced to pursue overdue payments you are entitled to charge for the administration in doing so.
If you fail to serve Section 166 Demand Notices to your tenants, or if they’re not served in the correct format as prescribed by the Commonhold and Leasehold Reform Act 2002, your tenants may exercise their right not to pay their ground rent.
Ground rent arrears are payments which are overdue and therefore payment should be made immediately. However, you may wish to offer a delayed deadline to encourage compliance.
No, you do not need a solicitor to prepare and serve Section 166 Demand Notices. We can provide this service on your behalf as a low cost option. Alternatively, if you are knowledgeable of the requirements of Section 166, you can request a free Section 166 Demand template from us to prepare and serve yourself. Learn more about our Section 166 Demand solutions here.
This depends on how quickly and easily we can obtain the required information. This consists of the arrears, copies of the leases, copies of any previous demands and address details for the leaseholders. Once we have this information, notices can be issued within 24 hours.
If you are not familiar with this process, you should consider seeking advice from industry professionals or a qualified solicitor. Learn more about the section 166 Notice here.
If your leaseholders aren’t paying ground rent there are several things that you can to do such as write to their lender to request payment or apply for a county court judgement. Read our expert recommendations here.
Leaseholders commonly pay ground rent once or twice annually and sometimes on the four annual rent payment days. This will be detailed in the lease agreement.
Yes, we can collect ground rents with our low-cost Section 166 Ground Rent Demand Service. We can demand ground rent on your behalf for up to six previous years to help you easily recover arrears. Learn more about our service here.
Ground rent varies between properties. Older leases tend to have lower annual ground rents such as £5 to £50 whereas modern leases are more commonly based on 0.1% of the property value. Learn more about how ground rent is calculated here.
Ground rent is a sum of money which a leaseholder pays to a freeholder in return for living on his land. If ground rent is payable, the lease will specify how and when it is payable.
Freehold interest is the term used to describe the landlord’s interest in the property. In this case the freehold interest refers to the rights over the land i.e. the freehold ownership.
Freehold ground rents are created when a building which resides upon freehold land is sold under a lease. For example, each property in a block of flats which is built on freehold land will have a lease. This lease dictates how many years the leaseholder is entitled to live in the property on the freeholder’s land, and how much ground rent they shall pay in return.
A freehold is the ownership of land and any building or structures which stand upon it. A person who owns a freehold property is often called a landlord by anyone living on the land. The landlord may grant a lease for another person to occupy the land or building.
A qualifying tenant is a tenant whose lease was granted for an original term of more than 21 years. The tenant is not required to have any present or past residence in the flats and there is no limit on the number of flats which one tenant may own.
