Leasehold property in London - really need advice as a scared first time buyer

tryingmybest62

The ground rent is £350 and doubles every 25 years. It will therefore be £700 at the end of our mortgage term. Only once it doubles again would it be over the £1000. Do you still think this could put someone off purchasing I.e. in the next 7 years or so. 

[Deleted User]

tryingmybest62 said:

The ground rent is £350 and doubles every 25 years. It will therefore be £700 at the end of our mortgage term. Only once it doubles again would it be over the £1000. Do you still think this could put someone off purchasing I.e. in the next 7 years or so. 

It certainly would put people off. As if the leasehold wasn't bad enough, the ground rent doubling is nothing more than a money grab for no return. Well, that's not entirely true, your return is that it's more difficult to sell, will sell for less and if you wanted to extend the lease it would cost you more.

Albermarle

tryingmybest62 said:

The ground rent is £350 and doubles every 25 years. It will therefore be £700 at the end of our mortgage term. Only once it doubles again would it be over the £1000. Do you still think this could put someone off purchasing I.e. in the next 7 years or so. 

If it is £350 today and in 25 years will be £700, then due to inflation that £700 will be about be equal to less than £350 in todays money ( assuming a certain level of inflation) . So in all likelihood the real cost will have gone down.