Commercial Ground Rents
Landmark Investments believes commercial ground rents are a real opportunity for the market. We’re leading the way with a number of initiatives we have developed to assist vendors to generate and release additional value.
Benefits of commercial ground rents
- Generate and release additional equity value by restructuring the title
- Release funds while retaining long term ownership
- Funds generated are profit
- Can be used to fund purchases and reduce cash input
- Clear or reduce negative equity positions
- Alternative to external debt such as banks or private equity
How it works
It’s a straightforward concept and is a form of sale and leaseback. The difference, however, is the lease is very long and the rent is low in comparison to open market rent.
The property owner retains ownership of the asset on a long lease and is responsible for the ground rent payment, all other income generated is retained by the property owner.
As ground rent is a secure and robust income stream, the price paid for it will be much stronger than the overall asset would typically attract. The split into freehold and long leasehold creates an uplift in the overall value of the site and therefore a gain to the owner.
We work with all types of commercial property including: offices, industrial, retail, leisure and hotels.
- All sectors considered – commercial, industrial, retail, office, land
- Unusual/problem properties considered
- Minimum asset (not ground rent) value £200,000 no maximum
- Single or multiple assets/portfolios
Generous commissions are always available for new introductions.
Call Mark Hawthorn today with any enquiries