Freehold/Leasehold (1 Viewer)

[AJB1983]

Can someone please explain or clarify something to me.

CCC own the freehold of the land on which the Ricoh stands..
ACL own the leasehold of the ricoh itself...

If SISU were to 'obtain' the freehold, what does this mean?

Am i right in thinking that they could do what the hell they liked with the land, i.e. knock it down to build houses for their investors? or does this mean they could charge an extortionate amount to ACL for the lease?

OSB58 maybe able to help with this?

 

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[edgy]

They could build a prison or a toxic waste dump. Or even another Taybarns!!

 

[chiefdave]

Can someone please explain or clarify something to me.

CCC own the freehold of the land on which the Ricoh stands..
ACL own the leasehold of the ricoh itself...

If SISU were to 'obtain' the freehold, what does this mean?

Am i right in thinking that they could do what the hell they liked with the land, i.e. knock it down to build houses for their investors? or does this mean they could charge an extortionate amount to ACL for the lease?

OSB58 maybe able to help with this?

ACL's lease has something like 40 plus years left to run. During that time SISU would not be able to (fairly and legally!) do anything to remove them other than offer to purchase the lease back therefore they would make zero over that period as the lease was paid for in one lump sum up front.

At the end of the lease they could either then take over the management of the Ricoh themselves or allow other companies to tender for the management or sell another lease or indeed knock it down.

Not sure how much, if any, of the undeveloped land is covered by ACLs lease so it may be the case that SISU could develop that land.

The only benefit I can see of owning the freehold is that bricks and mortar have a value against which you can secure debt. To me that seems to be their plan, get the freehold below market value, mortgage it to the hilt and then walk away.

 

[Sky Blue Kid]

chiefdave......."The only benefit I can see of owning the freehold is that bricks and mortar have a value against which you can secure debt. To me that seems to be their plan, get the freehold below market value, mortgage it to the hilt and then walk away."...............................................................................I think you summerised that perfectly

 

[Godiva]

Can someone please explain or clarify something to me.

CCC own the freehold of the land on which the Ricoh stands..
ACL own the leasehold of the ricoh itself...

If SISU were to 'obtain' the freehold, what does this mean?

Am i right in thinking that they could do what the hell they liked with the land, i.e. knock it down to build houses for their investors? or does this mean they could charge an extortionate amount to ACL for the lease?

OSB58 maybe able to help with this?

That's a very good question ... why haven't some of the bright people on here thought of that?