Leases With No Rent Reviews

If you are about to draw up your leases then you may want to have a quick look at this page. Many ground rents that we come across have leases that have been poorly drawn up as they have added no value to the freehold of the building therefore costing the landlord money.

There is no point in drawing up a lease where the ground rents do not increase throughout the term of the lease. These are inflation prone as they do not increase over time and will be worth very little as investments in the future. They will be eaten away by inflation and no investor will want to buy them. Of course they will have a value but it will be minimal. These types of leases are drawn up by people who are not interested in the value of the freehold.


Keep The Ground Rent Reviews Simple

When it comes to ground rent increases there is an array of increases that people use including some that need a degree in mathematics to figure out what they mean. It is best to keep the ground rent increments simple such as doubling every 25 years or increasing every 25 years in line with the retail prices index. These types of increases will in no way inhibit the sales of your leases and will make the freehold interest easy to sell.

You can have ground rent increases every 10 years or every 15 years and linked to the retail prices index. These types of ground rent increments are very popular amongst investors and they will pay good money for them. You should also sell the leases without any difficulty with this type of increase as they are fairly normal ground rent reviews in the current market.