Selling Ground Rents During Construction

If you have already started construction of your block of apartments and you want to sell the ground rents you can arrange a conditional exchange of contracts with a buyer for the freehold interest of the building. The sale of the freehold would be conditional and not take please until the sale of the last apartment had taken place. It means that the landlord is guaranteed a fast sale for the freehold and it also means that section 5 notices will not have to be served.

No Need To Serve Section V Notices

You can also do this even if your block is built and you have not sold more that 50% of the block. If you have sold more than 50% of the block you will have to serve section 5 notices on the leaseholders as they will have the right of first refusal and may wish to exercise their rights to buy the freehold. This arrangement is a good way of increasing cash flow as well as removing the responsibilities of managing the block.

Save Time And Money

Selling prior to construction or completion of a block is particularly popular with large housebuilders that have hundreds of flats within a site as the freehold can often be worth hundreds of thousand of pounds and they save q lot money on legal fees. As you can imagine if you have to serve 200 section 5 notices on the leaseholders this is going to be expensive