Leading auctioneer launches ground rent sales platform

Network Auctions reckons ground rents are a niche but growing opportunity for investors and estate agents.

limbrick auctions ground rents

Sourcing freehold ground rents to sell at auction is the next big opportunity for estate agents, a leading auctioneer has claimed.

Network Auctions, which is a major player in the residential property auctions sector, says that although it’s a niche sector it can be lucrative for both investors and agents.

“Agents working with builders, developers and landlords could create a valuable new income stream offering ground rent sales, but a lack of expertise might be holding them back,” says Toby Limbrick (pictured), a director at the auction firm.

“We can fully support interested agents to help them realise this potential and we’d be pleased to talk to any agent who thinks they could benefit by offering this service to their clients.”

Limbrick says the shift away from ballroom to online within the auctions sector during the pandemic lead his firm to launch a new business dealing specifically in ground rents.

Ground Rent Auctions will host its first online auction on 24th February.

Reforms

“I passionately believe agents should consider all methods of sale when valuing a clients’ property rather than just defaulting to type. The ability to offer private treaty and tender as well as auction sets our partners apart from competitors and is a fundamental reason why forward-thinking agents partner with us,” adds Limbrick.

Ground rents for long residential leasehold properties in England and Wales have been in the news recently as the government has sought, successfully, to ban them via its Leasehold Reform (Ground Rent) Act 2022, which is due to become law on August 8th. Several developers have already committed to selling ‘peppercorn’ only ground rent leaseholds ahead of this.

But most ethical investors are not interested in the ground rents as such, will are now banned for new leaseholds, but the ‘marriage value’ paid to the freeholder which is usually 50% of the agreed uplift in value created by a leasehold extension.


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