Tenure of Property Portfolio
Lease Payments
Making use of leases
▪ Greensleeves makes use of a mixed ownership model with 20 of its homes owned leasehold, and 8 on leases.
6,000
8
7
7
6
5,000
6
5
▪ The decision to lease or buy is driven by a range of factors ▪ Availability of the asset, often only available with a lease ▪ Cost of lease v. debt ▪ Impact on cashflow
4,000
5
3,000
4
3
3
3
2,000
2
3,640
2
2,823
5,086
1
1
2,165
1
1,623
1,000
1
▪
Leases can ▪
693
273
448
459
0
0
incorporate attractive features feature like initial rent-free period as the home is filling up ▪ Selling an existing asset can provide the opportunity to acquire a new freehold home and/or invest in existing assets ▪ Over the last few years leases have risen as a % of turnover in common with the rest of the sector ▪ We have a policy of 2 new freehold homes for 1 leased ▪ All Greensleeves leases have a number of common characteristics ▪ The RPI inflation element will be collared ▪ Covenants will be minimized ▪ Preferably with trusted developer
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
Leasehold rents
Number of homes - leasehold
Lease Payments as a % of Turnover
7.0%
6.4%
5.6%
6.0%
5.3%
4.5%
5.0%
4.0%
3.0%
3.0%
1.7%
1.6%
2.0%
1.3%
1.1%
1.0%
0.0%
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
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