If you’re looking to sell your ground rent, then it pays to know everything that the process entails in order to get the best possible price for your freehold. Ground rent may seem like an obscure subject even for property owners, but it is one of the methods favoured by landlords that can bring in a stable income. Property sales usually fall into one of two groups; either on a freehold or leasehold basis. The difference between the two being that by purchasing a freehold property a landlord then owns the building and the land that it sits on, while leasehold involves paying an annual fee, ground rent, to the owner of the freehold.
What is Ground Rent?
As mentioned above, most property sales fall into the category of either freeholds or leaseholds, with the latter ranging from anything from 99 years to 999 years and requiring an annual fee. The term ground rent therefore applies to leasehold properties and the amount paid each year to the freeholder by the entity currently holding the lease. The person or company that owns the land a property sits on is the freeholder and can sell the rights to the ground rent if they wish to.
Apart from raising some income, freehold lease holders may decide to sell due to the fact that although the ground rent provides a steady source of income, many issues may still arise. This includes having to manage the lease and ensure payments are made on time, while defaulters may have to be taken to court in order to get them to pay what they owe. All these issues can become a drain on your time and financial resources and this is why some holders choose to put up their freehold ground rents for sale.
In general, ground rents are usually a nominal sum of money charged annually by the freeholder and this is typically a figure in the low hundreds that can also be sold for a larger lump sum if the lease is purchased in its entirety by someone else. This is where ground rent specialists such as the open Property group come in, as they buy ground rent. Current landlords looking to sell their ground rents can choose this method for guaranteed earnings from a trusted company. Likewise, if you’re looking to find out more about selling ground rents then the company also has a wealth of experience and knowledge in the sector to help landowners. So if you have ground rent for sale get in contact for an instant cash offer.
Valuing Your Ground Rent
The value of any ground rent depends on several variables; including the number of years left on the freehold lease, as well as any agreed future increases in the amount of ground rent to be paid. Other variables that may affect how much a freehold ground rent is worth include; current market interest rates, the cost of collecting the rent if it covers several properties, as well as the risk of default. The final consideration is what is called the reversion value, which denotes the amount of time left before the leaseholder if fully entitled to the property when the ground rent period expires.
How to Sell Ground Rents
Selling ground rent can be a fairly pain-free experience if the right buyer is found but like any other property sale, it can also be fraught with difficulties and delay. While most property transactions may involve solicitors to help you navigate the legalities of the sale, there are also other ways to sell your ground rent quickly and easily. Open Property Group simplifies this process for freeholders looking for a reliable buyer who will purchase the lease at the best rate, for cash and with as little hassle as possible. The group are professional buyers of freehold ground rents and offer quick and reliable freehold lease purchasing.
When a freeholder agrees a purchase price with the Open Property Group, any qualifying leaseholders have the option to buy the freehold in a process called enfranchisement. However, lessees can only purchase your freehold at the agreed sale price, which means that going through the company is a great way to ensure you receive the market price for your property either way.
The other benefit of selling ground rents to an established company such as the Open Property Group is that the firm is able to purchase freehold ground rents quickly and for cash. Open Property Group can make a no-obligation cash offer as well as provide guidance on the sale process and any legislative requirements thereof. In addition to offering immediate cash value for your lease, the company also handles the legal aspects involved in selling and buying the ground rent. This includes serving the statutory notices referred to as Section 5 notices.
For freeholders looking to quickly raise some income going through the Open Property Group is one of the best ways of selling ground rents with a minimum of fuss and for a guaranteed price. As a professional organisation specialising in purchasing ground rents, the company has huge financial reserves and is a viable and trusted alternative for achieving a guaranteed cash sum.
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