The value of a freehold is affected by many different factors. These can include the amount of ground rent payable by the leaseholder throughout the duration of their lease, the location and value of the property, and the number of unexpired years remaining on the lease. We’ll explain what each of those are and the way in which they can affect the value of a freehold below.
Ground rent is the yearly rent payable by the leaseholder to the freeholder throughout the duration of the lease. Most leases differ and some offer ground rent that is fixed throughout the duration of the lease term, while others include rent revisions with increases set at particular intervals throughout the lease. The latter can be more profitable to a freehold investor and would therefore increase the freehold’s value.
The remaining lease terms of each property/flat within the building can have a significant impact on the value of the freehold due to the premiums payable to extend a lease. Leases that fall below 80 years cost more to extend due to marriage value being added to the premium. Consequently, a freehold with low lease terms can be more valuable to freehold buyers.
Lease extension premiums are also heavily influenced by the value of the properties within the building, whereby the more valuable the property, the more costly it will be to extend the lease. Therefore, it is important to value the leases accurately, particularly those with less than 80 years remaining.
Lastly, if the freehold land has development potential where you could convert or construct additional dwellings and therefore create new leases, the freehold will be worth more.
With so many factors to consider when valuing freehold ground rents, it’s advisable to seek expert assistance to ensure that it is accurate. Our team of freehold specialists have a wealth of knowledge on freehold ground rents and what they are likely to achieve, should they be offered for sale on the open market. We take every factor into consideration when assessing the value of a freehold and have access to Land Registry data in order to complete our appraisal. Our team are happy to assist any freeholder looking to sell their freehold, by providing a free, written quotation within 24-hours.
Our freehold valuation calculator has been developed to provide you with an instant calculation of the approximate value of your freehold ground rents. It’s completely free to use and will help you to understand the potential value of your freehold property. All you have to do is enter a few simple details about your freehold to see the valuation.
If you’d like to release your tied-up capital or free yourself of the endless responsibilities and obligations you have as a freeholder, then selling your freehold interest can be incredibly advantageous. It may seem like a daunting or stressful task to sell your freehold, but at Freehold Sale we make the selling process simple and hassle-free. Our team of freehold experts will manage the entire sale from start to finish, providing you with regular updates and answering any questions you may have throughout the process. We can also offer you a quick and easy sale as we are a cash funded freehold buyer.
We purchase freehold ground rents of any size throughout England and Wales, even if they have existing problems such as ground rent arrears or maintenance issues. Our expert advisers will start the process by performing a detailed assessment to ascertain the market value of your freehold interest. We’ll then talk you through the strength of your investment and could make you a cash offer for your freehold property in just 24-hours.
When selling your freehold ground rents, most freeholders are legally required to offer the Right of First Refusal to qualifying tenants before disposing of it. This can be a complicated task and can result in a fine and a criminal conviction if the notices are not served correctly. We can help you by serving the Right of First Refusal Section 5 Notices on your behalf to ensure that you comply with your legal obligations. This service is available at no cost to freeholders if you are selling to Freehold Sale.