Leasehold Houses

leasehold-houses

Leasehold Houses

Leasehold Houses Always Required Leasehold houses are sometimes created by builders across Britain. Sites are often built mainly across northern parts of the country and houses are sold on long leases of 125 years or 999 years.

Generally speaking the landlord is not in charge of the management of these sites as this will be carried out by the lessee. More often that not the main charge that the lessee will have to pay to the freeholder will be an annual ground rent.

Ground Rents On Leasehold Houses

The insurance of the house will be down to the home owner and they will also be responsible for the maintenance of the building. These types of leases are very different from flat leases as the home owner has more control. Retail Prices Index Ground Rent Income

Leasehold Houses Free Valuations

There is however a value to be placed on the these ground rents as they will be collected annually. The value will depend on the way that the ground rent increases are structured. If a ground rent increase is fixed to the retail price index they will be desirable to a lot of investors particularly ground rent investors looking to add them to their pension pots.

It is quite hard to buy index linked income and we have to assume that it will get harder unless more leases are drawn up in this way. We recently sold this ground rent portfolio in Cheshire that comprised of 11 houses sold on 999 year leases. We managed to get a multiple of 20 times for these ground rents.

No Requirement To Serve Section 5 Notices

It is likely that you will not have to serve section 5 notices on your lessees if you are selling the freehold to a house. We can confirm this once we have read through the lease. If you have a portfolio of leasehold houses that you are looking to sell we would be glad to help you. We can tell you over the phone what you can expect to achieve for them and have many buyers registered looking for this type of investment.

Ground Rents On Leasehold Houses Recently Sold