Good article in the Sunday Telegraph on ground rents. Please click below.
The focus this time is on the funds cashing in on this lucrative cashflow.
This is a low risk investment with very steady returns. Not surprisingly these rich streams of easy money are being gobbled up by a secret array of private and public funds.
And they are not just drawn by ground rents. Income pours in from a raft of charges in the form of lease extensions, service charges, licenses and commissions.
In one example, leaseholders were charged 10 times the market rate to have a new fire escape fitted, with the work being carried out by the owner's brother.
Yes service charges are needed for leaseholds but the argument for ground rents on freeholds is weak beyond lining the pockets of elite fund holders.
In 2015 some 43% of newbuild homes in England and Wales were leaseholds which really stretches credibility.
Institutional investors include Aviva, Standard Life, M&G - all cashing in on punitive and totally unwarranted charges on freeholders. How has this been allowed to happen?
The damage to freeholders has been well documented (can't sell, unmortgagable) and, thank goodness, the Government is now in consultation regarding this.
As for leaseholders, too often they feel they are at the mercy of unscrupulous landlords. They need to realise they now have beefed up legislation which can come to their aid. All they need to do is contact a specialist lawyer (ah hem!) and they will need to mobilise support from their fellow tenants. Once done, they are very much in the driving seat.
e lives in a 16th-century moated manor house in Norfolk, with a 4,500 acre estate full of grey partridges and a penchant for collecting Old Masters. Earlier this year he was reported to have sold a prized collection of drawings by artists such as Michelangelo, Rubens and Goya to the Getty Museum for $100m. Such is the life of Luca Rinaldo Contardo Padulli di Vighignolo, a reclusive Italian count who founded hedge fund Camomille Associates and runs a growing property empire.