Fruit Batman
26 Jul 2017
Ground Rents Ground rents were originally set in leases as nominal sums - such as a peppercorn - as it is a nominal 'consideration' to complete the 3 factors of a binding contract. i.e. Offer, acceptance and consideration. The system has grown arms and legs over recent years and is now open to abuse. The backlash against ground rents and associated 'admin' charges is set to continue IMHO.
Albino Investor
25 Jul 2017
Re: Residential ground rent scandal ? Ri... At the very least they should both reduce the residual value on the Balance Sheet by making adequate provision for the write down, and take steps to do something along the lines that you suggest AND issue appropriate statements to the effect that they disassociate themselves for acquiring / dealing in such types of ground rent leases ...i.e express some views on ethical adherence. That way they would gain credibility and sustain their forward business model.
jonwig1
25 Jul 2017
Re: Residential ground rent scandal ? Risk A... A proportion (I think 13%) of their properties have the 10-yr doubling clause and they accounted for these by adjustment to the NAV. What they own are (I'm pretty sure) blocks of flats (ie. managed services) which aren't included in the government's plans.However, the soundest thing they could do would be to amend the terms of these few properties to inflation-linking or similar on sale.
Albino Investor
25 Jul 2017
Residential ground rent scandal ? Risk Assessment Does anyone know if GRIO is involved in dealing in or holding in the following types of Ground Rents:......An investigation by the Guardian last year in collaboration with campaign group Leasehold Knowledge Partnership uncovered how buyers of Taylor Wimpey homes, predominantly in the north-west, found them to be almost unsaleable because of the doubling ground rents. One flat owner reported being trapped in a property that had been rendered virtually worthless just six years after being built. Others have been forced to pay £1,000-plus fees to their freeholder for permission to build an extension, while attempts to buy out the leasehold have been met with demands of £35,000 or more, even though the lease has, in some cases, hundreds of years to run. Sebastian O’Kelly, of the Leasehold Knowledge Partnership, said: “Homebuyers wanted homes and trusted a plc housebuilder. Taylor Wimpey created an investment asset class – the freehold – which it then traded to anonymous and murky investors, who hide their beneficial ownership behind nominee directors.“This ground rent racket is wealth erosion on a massive scale, which has fallen mainly on young first-time buyers and their families. It has revealed the rotten core of leasehold as a form of property tenure.”It would be nice to see some reassurance from the Board as it doesn't seem to be mentioned at all as a potential risk within the accounts at the end of last year.Any views ?
Fruit Batman
25 Jul 2017
Ground Rents on Houses Will the Government moves to ban ground rents on houses have any impact here?.
jonwig1
10 Feb 2017
Re: Dividends from 'GRIO Mine are in my ISA. For charges, see the Annual Report.
fieldsman
10 Feb 2017
Re: Dividends from 'GRIO The fact sheet states GRIO can't be held in an ISA. Catch22?Does anyone know what the charges are for this fund; can't find them which is unusual?
casabanker
06 Jan 2017
Re: Dividends from 'GRIO Thanks, jonwig, I didn't know that. I hold other REIT's but inside an ISA. I will look to doing a transfer from my trading account.Casa.
jonwig1
06 Jan 2017
Re: Dividends from 'GRIO GRIO is a REIT and pays PIDs not dividends. 20% tax is taken and is non-recoverable outside an ISA. If you hold it inside an ISA (or SPII) contact your broker to reclaim.
casabanker
06 Jan 2017
Dividends from 'GRIO I have been paid the recent dividend today from GRIO. There is a 20% reduction which I assume is a tax deduction but I have queried this with II. GRIO is based in the Channel Islands so the dividend will be paid gross of tax. If the reason is different to the one I have suggested, I will post again with the alternative.Casa.
