GroundRentsWanted - Elmdon Real Estate

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Why Should I sell my Ground Rents?
Frequently Asked Questions
Should I sell my Ground Rents to the leaseholders or you?

Why we buy ground rents

Ground rents provide an investment for those with a long term horizon, we aim to retain ground rents for 30-40 year periods after purchase. We are happy to take low returns in first few years of purchase in return for growth in the long term. As we specialise in ground rent investment we are adept at the irritating features which often make people sell

  • Constant correspondence with little reward
  • High capital value, but little income

If you own ground rents and are considering selling please call us on 0800 015 2500 or fill in the form above.

What are ground rents?

Ground rents are created when a long leasehold interest is granted from a freehold interest. The term ground rent refers to the amount payable annually by the long leaseholder to their superior landlord. In the early 1900’s landed estates would grant leases on their land to speculative builders, who would build houses on the fields. They would then pay annual ground rents to the freeholder. Unfortunately for the landed estates these ground rents often contained no rent review clause and lasted for 999 years, so inflation has eroded away their value.

Nowadays nearly all modern apartment schemes or 1980’s flat conversions have freehold ground rents. Typical ground rent owners include:

Active Developers: Building and selling apartment schemes, often retaining the ground rents for a ‘rainy day’. In the current market they are increasingly selling these on, and using the funds to buy discounted land banks.
Historic Developers: Developers in the 1970’s/1980’s, now in retirement and sending out the ground rent invoices from home. Normally surprised at the value of the ground rents they own, we have paid up to 30x the annual passing income on 1970s blocks.
Inheritors/ Probate Estates: Normally smaller portfolios, often with management issues. Contact often initially from retained professionals acting for estate beneficiaries.

If you are considering selling ground rents or just want a valuation for your annual accounts, please do not hesitate contact us for a no-obligation offer.

To speak to a member of the acquisitions team please call us on 0800 015 2500 or fill in the form