Max Posted March 1, 2022 Report Share Posted March 1, 2022 Are freehold investments no more? With the new The Leasehold Reform (Ground Rent) Act 2022 effectively banning Ground Rents on new properties, will the Freeholds of these properties have any value at all? Will they simply be a liability? Let me know your thoughts! Quote Link to comment Share on other sites More sharing options...
Richlist Posted March 1, 2022 Report Share Posted March 1, 2022 That's a very short sighted view of freehold investments in my opinion. It gives the impression that you know little about this asset class and the various opportunities the freeholds provide to investors. Ground rent is only one current source of income for owners of freeholds. Depending on the lease, the ground rent may represent only a tiny proportion of the opportunity the lease contains. Freeholders are often able to charge for: * Any physical changes made to the exterior of the property. * Permission to let to third parties. * Keeping animals at the property. * Annual management fees. * Charges for arranging buildings insurance. * Etc, etc, etc When ground rents are as little as £10 per annum I don t think the loss of that revenue is going to be any concern compared to the potential thousands of £s that can be made from the other opportunities in the lease. Quote Link to comment Share on other sites More sharing options...
Grampa Posted March 3, 2022 Report Share Posted March 3, 2022 There is still a value to the freeholder for lease extensions. Quote Link to comment Share on other sites More sharing options...
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