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You are here: Home / Latest News / Daily Mail says blue chips are cashing in on ‘rip-off ground rents’

Daily Mail says blue chips are cashing in on ‘rip-off ground rents’

August 10, 2017 //  by Sebastian O'Kelly

Now City blue chips cash in on rip-off ground rents

Some of the biggest names in the city are are cashing in on rip-off leasehold deals. Blue-chip investment firms Schroders, Old Mutual and Investec are just a few of the big-name backers of Ground Rents Income Fund (GRIF) that make money from buying up ground rent fees for houses and blocks of flats.

The Daily Mail today scrutinises the investors in the Ground Rents Income Fund plc.

It finds that blue chip firms such as Schroders, Old Mutual and Investec are among them.

LKP is quoted saying that ground rents are “parasitism in its worst form’, adding:

“It’s a great way to hitch a ride on the UK residential property market. It’s a way of disadvantaging the young and is a generational wealth erosion for them.”

Schroders said: ‘We are aware that 4 per cent of the total ground rent income is derived from doubler assets. We have been and continue to engage with management on these specific assets.’

Old Mutual did not want to comment.

The ground rent fund was set up in 2012 and claims that most of its portfolio is invested in ground rents that increase in line with the retail prices index, but 18pc of its property is attributed to doubling ground rents.

It made profits of £20.2million in 2016, up from £12.5million the year before. It has £125.7million of assets, according to its most recent annual report, largely from investment in ground rents.

Earlier this month James Agar, alternative investment fund manager to GRIF, said: ‘We welcome the Government’s consultation. We will submit our own response to the consultation, which will be available to view on our website.’

He added: ‘We are committed to being a socially responsible landlord, working hard to treat all leaseholders in a simple, honest and transparent manner.’

LKP has expressed the wish that Mr Agar and his fund become “socially responsible ex-landlords” in the near future.

LKP says:

“There is in the business model of ground rent investment that would be unfamiliar to an 18th-century landed gentleman.

“It is not wealth creation or imaginative business. It is parasitism that our legislators have shamefully failed to stamp out.”

Related posts:

Ground Rents Income Fund plc says it wants to be a ‘socially responsible landlord’. How about: socially responsible ex-landlord? Will Astor ‘tried to nobble reform of ground rents’, Daily Mail claims Daily Mail on leasehold houses and doubling ground rent scandals Leasehold houses to be outlawed, says the Daily Mail Daily Mail ‘reveals’ Will Astor’s ‘links to leasehold rip-offs’

Category: Latest News, News, PressTag: Daily Mail, Ground Rents Income Fund plc, Investec, James Agar, Old Mutual, Schroders

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Reader Interactions

Comments

  1. Stephen

    August 11, 2017 at 7:47 pm

    The Muslim idea that the proportion of the dividend attributable to the onerous leases should be donated to charity seems logical in these circumstances

  2. Kim

    August 15, 2017 at 7:35 pm

    RELIGION , the last refuge of a SCOUNDREL! You fool Stephen…..how familiar are you with the Muslim doctrine????? P

    • Stephen

      August 15, 2017 at 9:40 pm

      Under Sharia law an investment fund may wish to invest in supermarkets . However they would have an issue over the sale of alchaol . Therefore they invest in a supermarket but the proportion of any dividends received is donated to charity

      The amount of the dividend paid to charity is based on a proportion of profits from alchaol sales to profits from total sales

      All I am suggesting is that this funds receiving income from clearly onerous rents should pay a proportion of the dividend to charity

      It is an idea that seems to have merit – it is not a commentary on the Muslim faith

  3. Kim

    August 15, 2017 at 10:17 pm

    Yeah, if you say so – ‘Stephen’ Stephanie ‘ or ‘Other”. Is there an equivalent in the Jewish faith? I mean , let’s face it Jews and muslims are from the same tribe..

  4. admin

    August 16, 2017 at 12:52 pm

    Dear Kim,

    Some of your comments are vituperative, and it has been suggested that the above comment may be racist.

    It isn’t in our view, but this is not the place to discuss the moral systems of the founding religions of civilisations.

    Please correspond with each other with some politeness. We are extremely reluctant to remove readers’ comments on this site, but will do so if we feel it is necessary.

    Additionally, you would be more effective – and make a better contribution to the cause of leaseholders – if you were disciplined and temperate in your comments.

    Leaseholders behaving intemperately suits monetising freeholders and their professional advisers just fine. Ergo, act the opposite.

    Regards,

    Sebastian O’Kelly
    Trustee

  5. Kim

    August 16, 2017 at 1:33 pm

    Dear Sebastian

    As the daughter of a Jewish Mother and an African Muslim father but is an atheist – my comment was not meant to be in the slightest bit racist and I am most relieved that LKP has taken that view. However, I entirely take on board that I can be a bit harsh and sarcastic ‘ sometimes.- I will desist. I cannot imagine who would think my comment racist but there you go. I will not be in the slightest bit offended if you wish to remove it as it really didn’t add anything to the debate.

    Regards
    Kim

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