Assessing resale difficulty

saajan_12

Ybe said:

ground rent which escalates by £140 every 25 years? First increase already happened in 2019 and now sits at £280.  

to double check, is it definitely increasing by £140, as opposed to doubling after every 25 years? Iff the increase is a fixed £140 then that's good for you as in real terms, the increases get less and less meaningful. 


Re 1-bed flats in general, there's always going to be a question on the resale value. On one hand, you and all the other buyers before you have been interested so there is A market there.
On the other hand, the target market feels like it would be small and shrinking, given increased working from home and hence living with more space further away. A one bed is generally useful for a couple, maybe with a baby but beyond that they'll likely outgrow it, and not really suitable for sharers. At that stage in life, are many people really able to afford buying a property, rather than renting? So arguably there is a larger BTL market but fewer owner occupiers who would buy. Also some might work locally, but a lot would be commuting into central London, which is still 45-60 mins away, so does a short distance to the station make that much difference at that point? How do other flats in the area (even if an extra 5 min to a station) compare? 

Ybe

saajan_12 said:

Ybe said:

ground rent which escalates by £140 every 25 years? First increase already happened in 2019 and now sits at £280.  

to double check, is it definitely increasing by £140, as opposed to doubling after every 25 years? Iff the increase is a fixed £140 then that's good for you as in real terms, the increases get less and less meaningful. 


Re 1-bed flats in general, there's always going to be a question on the resale value. On one hand, you and all the other buyers before you have been interested so there is A market there.
On the other hand, the target market feels like it would be small and shrinking, given increased working from home and hence living with more space further away. A one bed is generally useful for a couple, maybe with a baby but beyond that they'll likely outgrow it, and not really suitable for sharers. At that stage in life, are many people really able to afford buying a property, rather than renting? So arguably there is a larger BTL market but fewer owner occupiers who would buy. Also some might work locally, but a lot would be commuting into central London, which is still 45-60 mins away, so does a short distance to the station make that much difference at that point? How do other flats in the area (even if an extra 5 min to a station) compare? 

https://www.rightmove.co.uk/properties/156791921

This one is a few minutes further from the station and on the high street but much cheaper. The main issues with this one are it’s currently shared ownership and the owner is doing a back to back staircasing to sell 100%. And also it is on a district heating network and you don’t have choice over the supplier you use. You have to use switch2’s pay as you go system