How could a freehold title split benefit you?
Large lump sum in exchange for a yearly ground rent.
The concept is a simple form of sale and leaseback, yet unlike other sale and leasebacks the lease is ultra-long, the rent is low and the vendor retains the benefits of long term ownership. The owner exchanges their freehold for a long leasehold interest, benefitting from a large lump sum and in return will pay the landlord a yearly ground rent.
The split into freehold and long leasehold creates an uplift in the overall value of the site and therefore a gain to the owner.
The correct structuring of leases to create a ground rent element on your property or site offers a wide range of benefits:
- Generate and release additional equity value by restructuring the title.
- Release funds whilst retaining long term ownership of the property.
- Cash injection for owner.
- Reduce external debt funding needs.
Essentially this process creates separate titles for the land and property elements of the asset.
WeBuyPremises can acquire the land and lease it back on an ultra-long lease with a ground rent. The residual long lease property retains the majority of its value and you will retain all the usual benefits of ownership.
The net result is often a substantial rise in value as additional equity is created and release through this concept.
Commercial ground rents are an underutilised opportunity for property developers, investors and owners to benefit from.
This service is available for all types of property or land nationwide with a value of £1m+.