Why We Buy Ground Rents

When a new block of flats is built or an existing building converted into self-contained units, you have two types of ownership. The freehold interest and the leasehold interest of each flat. When all of the flats are sold on long leases the freeholder still owns the freehold of the building.

Depending on the way the leases are drawn up the freeholder may be responsible for the insurance and management of the block along with the day to day management. As the owner of the freehold the landlord will collect the ground rent as stipulated in the lease. The landlord will be obligated to carry out certain duties within the terms of the lease as will the lessees. The lease will have covenants that the freeholder and the lessee have to adhere to.
Ground Rent Income

As a freeholder you will benefit from the annual income that the ground rent provides and you will be able to charge the lessees a fee for dealing with the management of the building id that is what the lease stipulates. In some cases the lease will have been drawn up so that the lessees deal with the management of the block so that the freeholder just receives the ground rent income from the block.

As major buyers in these types of investments we are always looking for ground rents of amy description. We can help and advise you in connection with any ground rents that you may be looking to sell. We can also help you in connection with any section 5 notices that may need to be served on your lessees.