Add a whopping £157,500 to your freehold investment value. Assuming a typical £350 ground rent on 300 flats switching to Ringley could save you £6,300 a year - at a 4% yield you could add £157,500 to the value!
Save up to 50% on ground rent collection: the magic that enables us to do this is bulk processes and robotic accounting
- We deliver investors more of their money because our cost base is lower.
- We use annual demand packs and send copy demands, polite reminders and final notices by email.
- We offer Leaseholders the option to pay by direct debit also.
At Ringley bulk processes, robotic accounting and automated allocations and the mailing warehouse we use together make light work of managing ground rent collection.
Together this creates the magic and is why our fee is not the 10% to 12% norm, but is just 6%*, some 50% cheaper.
After the final notice outstanding Ground Rent debts above £350 seamlessly escalate to Ringley Law and Solicitors letters are sent as well as letters to any lender. Civil procedure rules pre trial mediation is offered before a County Court money judgement is sought, this usually being the most effective route for small debts with no realistic prospects of forfeiture, for which a Tribunal determination of the breach or Court judgement is now required. For larger Ground Rent debts or where both Ground Rent and Service Charges sreare outstanding to the Freeholder S146 forfeiture proceedings to terminate the lease and take back possession will certainly be viable. Naturally, the costs of action will is added to the debt.
Ringley provide a full and comprehensive Freehold and Ground Rent Management Service to institutions, companies and leaseholders throughout the UK. We have the in house expertise and the constantly improving software for enhanced customer experience to cover all aspects of ground rent collections, reviews, monitoring and associated queries.
Developer lease drafting & completions service
Ringley Law help developers draft effective leases that require each leaseholder to provide a service address in England or Wales the basics for ease of serving both demands, and if necessary proceedings), preventing the necessity to serve proceedings in foreign jurisdictions. Ringley Law support developers and housebuilders preparing well drafted leases incorporating all the tricks to best protect the Freeholder from asset management and service charge management perspectives. Contact Ringley Law now. As a leading managing agent our block management team can advise on Ground Rent levels to achieve the best price for your Ground Rents and to be palatable and fair for purchasers.
For those wishing to sell ground rents
When a landlord wants to sell the Freehold a Section 5A notice must be served on leaseholders. This is a legal obligation on landlords before the freehold can be sold on the open market called the right to first refusal. So, whether you wish to sell either the freehold of one building or a portfolio of Ground Rents then Ringley Law can assist and serve the Section 5 Notice prior to either sale by auction or by private treaty. For a privaty treaty sale the proposed sale price has to be named. For a sale by auction the leaseholders can take assignment of the auction contract and complete the purchase themselves.
For freeholders who have received a Section 13 Notice
Unless the leaseholders have messed up their Section 13 Notice to exercise their statutory right to enfranchise - it is a certainty that the freehold must be sold. What matters next is to serve a Section 21 Counter Notice stating a premium and any conditions such as leaseback of any non leased flats. Talk to Ringley Law ASAP as timescales apply and not doing so would lead to a forced sale on the Leaseholders terms. Contact Ringley Law now.
Ground Rent is an amount of money specified in a lease that the Leaseholder has to pay to the Freeholder. It represents rent for the land upon which the block of flats is built as a lease is for a term of years after which the ownership of the right to live in the flat ends. In effect an apartment is demised to a leaseholder for a term of years subject to paying ground rent. Ground rent is normally paid annually, quarterly or bi-annually. The specific ground rent requirements including amounts due, required dates and details of periodic reviews are defined in the lease.
5% Ground Rent Collection Service:What is included:
- Issuing of all demands
- Fair 3 stage process, demand, polite notice, final reminder
- DD & multiple payment methods
- Ledger reconciliation & maintenance
- Ground Rent settlements
- Automated arrears reporting
- Automatic Ground Rent increases at reviews
- Legal recovery action (no cost to the freeholder)
- Ownership registers maintained
- Consents and dealings: licences sales, sub-letting, alterations
- Service of Counter Notices for lease extensions or freehold enfranchisement
- Execution of Lease extensions or Freehold transfers
- Property sales and leasehold enquiries: deed of covenants, licenses to assign and certificates of compliance etc..
- Advice on cost effective building insurance
Building Safety & Compliance Service:What is included:
- Identification of each plant/asset type
- Documenting each plant/equipment item
- Asset tagging with QR Codes
- Reporting on BS Standards and Best Practice requirements
- Automatic creation of PPM (planned property maintenance schedule)
- Setting the annual plant/equipment budget
- Monitoring of incumbent Managing Agent by providing a:
- portal for upload of compliance documents
- dashboard to close out recommendations
- contractors app to capture job sheets at source
- calendar PPM view
- scheduler PPM view
- Plant, Hard Services & Equipment management
- setting the annual plant/equipment budget
- procurement & tendering of contractors
- entering into contracts on behalf of the client
- raising contract orders for payment by the Managing Agent
- databasing what is or is not included in the contract
- checking off statutory maintenance against the PPM
Frequently asked questions
What is the ground rent collection?
Ground rent collection is the process of collecting rents from tenants for the use of land or property. The collected funds are then used to pay for the upkeep of the property, taxes, and other associated expenses.
Ground rent collection can be a daunting task for landlords, especially if they have multiple properties and tenants. There are many factors to consider when collecting rent, such as late payment penalties, bounced check fees, and other associated costs.
The best way to collect ground rent is to use a professional service that specialises in the process. These services will handle all of the necessary paperwork and contact with tenants on behalf of the landlord. This can save a great deal of time and money in the long run.
If you are a landlord looking for a ground rent collection service, there are a few things to keep in mind. First, it is important to find a reputable company that has experience in the industry. There are many scams out there, so it is important to do your research before selecting a service.
Second, make sure that the company you select offers a money-back guarantee. This will protect you in case the service does not live up to your expectations. Finally, ask for references from past clients to get an idea of the quality of service you can expect.
What are the benefits of using a ground rent collection service?Using a ground rent collection service is a great way to simplify the process of collecting rent from tenants. It can save you time and money in the long run, and provide peace of mind knowing that your property is being well-maintained.
What happens if ground rent is not collected?
If ground rent is not collected, the property owner may be responsible for paying the expenses associated with the property upkeep. This can include taxes, repairs, and other costs. The property owner may also be liable for any legal fees associated with evicting tenants who have not paid their rent.
Landlords should consult with a solicitor to ensure they are in compliance with all applicable laws.
Do freehold properties pay ground rent?No, freehold properties do not pay ground rent. The term "freehold" means that the property owner has full ownership of the land and property, and does not have to pay rent to any other party. Freehold properties are typically found in rural areas, and the owner may be responsible for paying taxes and other associated expenses.
What is the process for collecting ground rent?In general, the process includes sending a notice to the tenant containing the amount of rent owed and the date it is due. The landlord may also include a late payment penalty in the notice. If the tenant does not pay the rent, the landlord may begin the eviction process.
Ringley is a Group of companies each providing a specialist area of property advisory or management. Together we are seamlessly integrated to maximise asset value through efficient block management, budgeting, accounting and general financial administration.
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