This ground rent investment is held on a Head Lease (The Crown is the freeholder) which expires on 5th July 2060 and includes 45 leasehold flats with associated garages, held as under-leases. 42 of the flats are sold on long under-leases with peppercorn ground rents. The three remaining flats produce a current annual ground rent income of £113.48 and should these leaseholders decide to extend at any date in the future, it offers the potential for a 50% share of the marriage value.
Fairlands Court and Newlands Court is a development of low-rise three storey buildings at the junction of Footscray Road and North Park. Located in a much sought-after area in the Royal Borough of Greenwich, the flats are near to Eltham High Street and Eltham Station.
We understand the Head Lessee insures, maintains and manages the blocks, recovering the costs from the leaseholders by way of a service charge, which currently generates £19,500 per annum. Part of the property comprises a sub-station which is currently let to London Power Networks Plc for a term expiring on 4 June 2022. Negotiations are under way to renew the lease for a term of 40 years at an initial rent of £250.00 per annum subject to five yearly rent reviews based on RPI.
We understand from the seller that the Buildings Insurance currently produces approximately £1,600 annual commission. Interested parties should refer to the legal pack for further details on available to download from the Clive Emson website.
Section 5(B) Notices under the Landlord & Tenant Act 1987 (as amended) have been served and the leaseholders have not reserved their rights under the legislation.
Leasehold for a term of 98 years, from 5th July 1962, at a ground rent of £75 per annum payable to the Crown Estate and subject to existing under-leasehold interests contained therein.