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Headlease value / price
massig
Posts: 36 Forumite
Hello,
is there a formula to calculate how much a headlease is worth?
Thanks for your help.
Kind regards
Massi
is there a formula to calculate how much a headlease is worth?
Thanks for your help.
Kind regards
Massi
0
Comments
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If the headlease ends at the same time as the subleases - I guess the starting point is deciding what yield you are looking for.
i.e Your rental income will be the total of all the sublease ground rents you collect, minus the headlease ground rent you have to pay.
If it's a 'qualifying property', don't forget subleasholders' rights to statutory lease extensions.
Sublease ground rents will drop to zero - but you should receive compensation according to the statutory formula.
However, I don't know what happens to headlease ground rents with statutory lease extensions. I guess you may have to continue paying your ground rent, even if your rental income drops to zero.0
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