Thanks guys. You are all amazing and this forum is very helpful. Got out of the deal in time and avoided a nasty surprise further down the line.
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I have some places where I bought the house that is in flats, no probs as i became the freeholder as well. .A 999 year lease with about 900 years to go. is a different kettle of fish
I have one in my portfolio that is broadly similar in situation. I let it get devalued on survey, then it became clear to the vendor that it wasn’t a high value property in the current form. Eventually it became only practically attractive to a cash buyer, of which there aren’t so many about. So I picked it up quite cheap as a risk managed exercise. My theory is that gov will probably do something to change the doubling factor. If they don’t, as previously stated, the increases during my lifetime are manageable. And when the lease runs out, or needs renegotiating, I’ll be worm food & will have extracted the value from my purchase. My heirs will just have to sort it out. Let’s face it, they won’t have paid for it, so any value over zero is a plus for them. My way of thinking was purely on an investment level, over my own lifetime. Sometimes being selfishly practical helps.
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Vikram - quick question out of interest, if I may … where was the property located and what deferment rate did your surveyor apply to calculate the premium ?
Not sure of the deferment rate. He mentioned he has used a number of variables in calculating the figure including professional fee.
Property is in Romford - South East
Wouldn’t have surprised me if it had been more than this - but still a
way beyond your benchmark!