Ground Rent Valuations

If you own the freehold of a block of flats that have been sold off on long leases you may want to find out how much the freehold value is. Provided the flats have an unexpired term of over 95 years the process for carrying out a valuation is very straight forward. The value is arrived at by a simple multiplication of the TOTAL amount of ground rent that is collected by the freeholder.

For example a block of 20 flats currently pays annual ground rent of £5,000 per annum. in this instance the valuation would be between fifteen and twenty times £5000 which equates to £75,000 - £100,000. This is a very basic valuation and more information would be required in order to give you a more precise figure. Generally speaking we would pay you fifteen to twenty times the annual ground rent that is collected.

Ground Rent Valuations Free Ground Rent Market Appraisals

Of course this figure could go up of down depending on the way your leases are drawn up so we would need to have a look at the leases before we could be more precise but the above information does enable you to do a basic valuation. Of course the above calculation can only be used for long leaseholds and can not be used where the leases have an unexpired term of under 80 years. The reason for this is that a totally different calculator must be used for a flat where the leases have dipped under the 80 year threshold. More information can be found on this at the leasehold advisory service which is a government funded body.