When speaking to your broker about a property, understanding the lease terms should be equal to understanding the yield and price point of the property. Thankfully all Baron & Cabot investment properties have been through the due diligence. Below is what we look for.
When addressing a property speaking to your broker about the lease early on in the fact find is an aspect which is incredibly important and often overlooked aspect when we speak to our clients. Understanding how much the ground rent is, and how much it increases will have a direct impact on your profit margins in years to come.
For those here looking for a short answer a ‘normal’ service charge tends to run at about £2 per square foot per year, more with more services, less for a basic property.
So, you have found the right property, you’ve checked the developers track record and the price of the property, you’ve checked that there is planning in place for the development and that the developer is funding the whole project.
Off plan developers may ask for different amounts on exchange, how much should you pay and what protection do you have?