fbpx

FAQs

FAQsValuing freehold ground rents

What information do you need from me to value my freehold interest?

We simply need the address of the property so that we can obtain copies of the leases from Land Registry.
FAQsValuing freehold ground rents

How do you value freehold ground rents?

To value freehold ground rents we first require the address of the freehold property so that we can obtain the leases from Land Registry. Using the leases together with other variables, our experts perfom a detailed appraisal of the freehold property.
FAQsValuing freehold ground rents

Are your freehold valuations accurate?

Our expert team are highly experienced to deliver accurate appraisals of freehold ground rents. Our valuations are based on what you would likely achieve from a sale to a freehold investor. For a professional valuation to be used in any formal proceedings, you may need to contact a chartered surveyor.
FAQsLeases

Can you assist with the creation of residential leases?

Although we are not able to create or draft leases, we can assist freeholders or developers who require support with the terms that should be included in the lease, such as ground rents, rent review best practices, and key points such as repair obligations and service charges. In order to draft leases, we recommend employing the services of a qualified solicitor.
FAQsLeases

How accurate is your lease extension calculator?

Our lease extension calculator has been formulated using current market data to give you the most accurate estimation of the premium payable. However, we cannot guarantee true accuracy and the results must not be relied upon or used in any formal proceedings or tribunal.
FAQsLeases

What is marriage value?

Marriage value is 50% of the difference in value between your property having a short lease (before renewing) and when the lease is extended. Marriage value comes into effect when the remaining lease term falls below 80-years, and will increase the premium to extend a lease as marriage value is added to the premium payable to the landlord.
FAQsLeases

Can you provide a lease extension valuation?

You can obtain an estimate of the premium payable to extend your lease using our Lease Extension Calculator. For a formal valuation, you will need to employ the services of a chartered surveyor.
FAQsLeases

How much does it cost to extend a lease?

The amount that it costs to extend a lease is dependent on a number of different factors. This includes but is not limited to the number of years remaining on the lease, the amount of ground rent payable, and the value of the property. To get an estimate of the premium payable to extend a lease, use our Lease Extension Calculator.
FAQsLeases

What is a lease extension?

A lease extension is an increase in the number of years that the leaseholder is entitled to live in the property before it reverts back to the freeholder.
FAQsLeases

What is a lease?

A residential lease is a legal contract beween a freeholder (landlord) and a tenant (leaseholder). A lease sets out the rights, obligations and responsbilities of both the freeholder and the leaseholder.
FAQsSection 166 demand for ground rent

Do you charge tenants an additional fee for being in arrears?

Yes, as it costs money to pursue tenants that are in arrears. If you are forced to pursue overdue payments you are entitled to charge for the administration in doing so.
FAQsSection 166 demand for ground rent

What happens if I don’t serve Section 166 Notices?

If you fail to serve Section 166 Demand Notices to your tenants, or if they’re not served in the correct format as prescribed by the Commonhold and Leasehold Reform Act 2002, your tenants may exercise their right not to pay their ground rent.
FAQsSection 166 demand for ground rent

How long are tenants given to pay their ground rent arrears?

Ground rent arrears are payments which are overdue and therefore payment should be made immediately. However, you may wish to offer a delayed deadline to encourage compliance.
FAQsSection 166 demand for ground rent

Do I need a solicitor to prepare and serve Section 166 Demand Notices to my leaseholders?

No, you do not need a solicitor to prepare and serve Section 166 Demand Notices. We can provide this service on your behalf as a low cost option. Alternatively, if you are knowledgeable of the requirements of Section 166, you can request a free Section 166 Demand template from us to prepare and serve yourself. Learn more about our Section 166 Demand solutions here.
FAQsSection 166 demand for ground rent

Will you take further action if my tenants still don’t pay their ground rent?

No, if further action is required, you may need to seek advice from a qualified solicitor.
FAQsSection 166 demand for ground rent

How quickly can you prepare and serve Section 166 demand notices?

This depends on how quickly and easily we can obtain the required information. This consists of the arrears, copies of the leases, copies of any previous demands and address details for the leaseholders. Once we have this information, notices can be issued within 24 hours.
FAQsSection 166 demand for ground rent

How much does your Section 166 ground rent demand service cost?

This varies based on the number of Section 166 Demand Notices required. Please contact us for further information.
FAQsSection 166 demand for ground rent

How do I prepare and serve a Section 166 Demand for ground rent?

If you are not familiar with this process, you should consider seeking advice from industry professionals or a qualified solicitor. Learn more about the section 166 Notice here.
FAQsSection 166 demand for ground rent

What is a Section 166 Demand?

A Section 166 Demand is a formal ground rent demand notice that a freeholder issues to the leaseholder when requesting payment of the ground rent.
FAQsGround Rent

My leaseholders aren’t paying their ground rent, what can I do?

If your leaseholders aren’t paying ground rent there are several things that you can to do such as write to their lender to request payment or apply for a county court judgement. Read our expert recommendations here.
FAQsGround Rent

How often should a leaseholder pay ground rent?

Leaseholders commonly pay ground rent once or twice annually and sometimes on the four annual rent payment days. This will be detailed in the lease agreement.
FAQsGround Rent

Can I increase the amount of ground rent that I charge my tenants?

You can only increase the amount of ground rent payable if this is permitted by the lease.
FAQsGround Rent

Do you collect ground rents?

Yes, we can collect ground rents with our low-cost Section 166 Ground Rent Demand Service. We can demand ground rent on your behalf for up to six previous years to help you easily recover arrears. Learn more about our service here.
FAQsGround Rent

How much should ground rent be?

Ground rent varies between properties. Older leases tend to have lower annual ground rents such as £5 to £50 whereas modern leases are more commonly based on 0.1% of the property value. Learn more about how ground rent is calculated here.
FAQsGround Rent

What is peppercorn ground rent?

Peppercorn ground rent in basic terms means zero ground rent. You can learn more about peppercorn ground rent and how it affects you, here.
FAQsGround Rent

What is ground rent?

Ground rent is a sum of money which a leaseholder pays to a freeholder in return for living on his land. If ground rent is payable, the lease will specify how and when it is payable.
FAQsGeneral

Where can I find more information about Freehold Sale?

You can learn more about Freehold Sale on our About us page, LinkedIn and Facebook pages.
FAQsGeneral

What is freehold land?

Freehold land is land which is free from hold i.e outright ownership of the land.
FAQsGeneral

What is freehold interest?

Freehold interest is the term used to describe the landlord’s interest in the property. In this case the freehold interest refers to the rights over the land i.e. the freehold ownership.
FAQsGeneral

What are freehold ground rents?

Freehold ground rents are created when a building which resides upon freehold land is sold under a lease. For example, each property in a block of flats which is built on freehold land will have a lease. This lease dictates how many years the leaseholder is entitled to live in the property on the freeholder’s land, and how much ground rent they shall pay in return.
FAQsGeneral

What is a freehold property?

A freehold is the ownership of land and any building or structures which stand upon it. A person who owns a freehold property is often called a landlord by anyone living on the land. The landlord may grant a lease for another person to occupy the land or building.
FAQsGeneral

What is a qualifying tenant for the Right to Manage?

A qualifying tenant is a tenant whose lease was granted for an original term of more than 21 years. The tenant is not required to have any present or past residence in the flats and there is no limit on the number of flats which one tenant may own.
FAQsGeneral

How long has Freehold Sale been operating?

Freehold Sale Limited was formed in 2013 however, the owners and staff have owned and managed property for many years.