Administrators of a failed property developer were looking for a ground rent investment company that could act quickly. They were keen to sell off the registered freehold to a block of over 200 flats with a ground rent income in excess of £52,000. The leases contained an advantageous rent review clause with an uplift linked to inflation; the next review date was only 18 months away.
We had the funds available and agreed a purchase price in excess of £1 million for this ground rent investment. Completion took place within 7 days of the expiry of the Section 5 notices (which had to be served on the lessees to allow them the right of first refusal, a right not taken up in this case). Prior to completion we took out indemnity insurance because the building regulation approval paperwork could not be produced. Similarly, we had organised for a risk assessment to be carried out by the insurance company so that buildings insurance could be put in place in accordance with the terms of the lease immediately upon the acquisition of the freehold.