Things To Consider Before Auctioning Ground Rents
Selling your freehold ground rent through auction can take up to 6 months longer than selling through private treaty to Ground Rent Buyers. Also, if your lessees exercise their right to buy after section 5b notices have been served, this has to be disclosed in the auction catalogue entry and normally puts off potential buyers bidding on your freehold ground rent. This means your lessees might be able to buy the ground rent below the true market price as they may not be bidding against anyone. If the lessees do not exercise their right to buy, you are still dependent on who is in the room bidding; if there are not many people in the room then the chances are your ground rents may not be sold, or if the are, they may be undersold as most auctioneers insist on a low reserve price.
By selling to Ground Rent Buyers, by way of private treaty, we will always offer you the market price for your ground rent and complete shortly after the section 5a notices (notice for sale by private treaty) have expired. This will only take 2 months compared to the 4 month notice period for auction, then you have to wait for the auction date and completion takes place 28 days after this date. So as you can see it is a much quicker process by selling through private treaty and gives you complete control over the sale of you ground rents.
Please call Ground Rent Buyers today on 0208 1331221 and speed up the process of selling your ground rent.