X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Buy-to-Let

    Buying short leases in London

    An often talked of strategy is to buy short term leases particularly in London.

     

    When I drill in to the valuation formaulas applied to the same there appear to be several ingredients in the cake:

     

    1 Ground rent

    2 Marriage value

    3 Implied return (gilt rate)

    4 Value at 100 years or more

    5Current term of lease

    6 ESTIMATE VALUE TODAY ON CURRENT LEASE.

     

    My question is two fold..

     

    A) If the cost of a lease extension is in part driven by the value of the property with current short lease today, unless there is an indpendent way of assesiing the current value, the formula/approach is circular....right?

     

    B Even if you pay less than the the market value for the short lease, if the cost of lease extension s driven in part by current market value, any surveyor will likely consider what you have paid, and if at a discount, I will then end up paying more for the lease extension than had you paid market price for the short lease...right?

     

    Thoughts commenst and cristisms please

     

    Kind regards

     

    Bengt

     

    0
    0