It is probably fair to say that economies of scale come into play when a large portfolio of ground rents is being sold. A buyer will pay a good price for a portfolio particularly if they are able to purchase the shares in the company that own the ground rents. This is much easier than dealing with section 5 notices.
If for example a property company is being sold that owns 5,000 ground rents you can imagine the work involved in dealing with individual section 5 notices. It’s much easier to have the ground rents valued and transfer the shares via a company sale.
Most large portfolios are sold via a sale of company shares as it is the most cost effective way of securing a sale. It also means that the buyer will be able to buy the whole portfolio withou losing any properties to leaseholders
If you would like to discuss the sale of your company please get in touch with us. We have many buyers looking to buy large parcels of ground rents and can complete any sale very quickly.
We have conducted many company sales in the past and it is a very realistic way of bulk selling your ground rent portfolio. Of course it will not be an option form many sellers who are only selling a few ground rents but for a property company that has a lot of ground rents owned by a limited company it is a viable option
If you are considering a company sale we would love to hear from you. We can tell you if there is a realistic chance of selling your portfolio and also tell you how much it is likely to cost you. We have specialist buyers that deal with these types of acquisitions and it is likely we could get you an offer fairly quickly should you decide to sell