Diversify their property investments.

The amount of Ground Rents are detailed within the lease; most Ground Rents are for fixed amounts with fixed reviews throughout the lease term,  but some have increases/reviews based on the Retail Price Index (RPI).

Technically a long lease is anything over 21 years, but in most cases lease commence with between 99 and 999 years.  Freehold Ground Rent Investments gives Ground Rent investors the opportunity for solid, steady returns and gives an opportunity for property investors to diversify their property investors.

With many lenders requiring 80 year terms for lending there has been an increased opportunity for Freehold Ground Rent Investors to obtain premiums for lease extensions. Income opportunities also arise with any change to the terms of the lease, these are called a Deed of Variation, the leaseholder has to have these deed of variations agreed by the freeholder, and the leaseholder has to pay a premium to the freeholder.

As examples these deed of variations maybe minor changes where more modern wording is required for mutual covenants with other leaseholders.

Many investors have added value to their property investments by carrying out building improvements, refurbishments, extensions, and even developing the grounds with further development, and in more recent times we have seen a number of new floors being added to existing blocks.  These all provide the freeholder with income opportunities.

Call us on 0203 987 0139 or send an enquiry here.

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