Properties With Short Leases
If you are the owner of a block of flats where the leases are under 80 years you have a couple of options that are open to you. You can wait until the leaseholders decide that they want a lease extension or you can simply sell the blocks as it is.
Many landlords wait until they can extend the leases but there are a lot of people that decide they do not want to wait around for an extension and decide to cash in on their investment.
In some instances many ground rents are selling for almost 80% of what a lessee would be expected to pay for a lease extension. Obviously as each year goes by the leaseholder will have to pay more to extend their lease but some landlords find that they can make their money work better for them in other types of property investments.
Leasehold Valuation Tribunal
Not all lease extensions are straight forward and there can be a lot of wrangling between landlord and lessee before a case can be heard at the Leasehold Valuational Tribunal. If this is the type of business that you are involved in then that is fine but many of these short leases have arisen just because they are in their portfolio.
If you would like to know what your ground rents are worth we would be glad to give you our opinion as well as make you an offer to acquire your interest.
We look forward to hearing from you.