littleoldlady
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Post by littleoldlady on Jan 16, 2017 14:13:27 GMT
I have a grandson aged 10. I have had the idea of buying him the freehold in a leasehold property with about 50-60 years remaining on the lease(s), to support him in his later years. Do any of you knowledgeable people know if this is feasible? Is there a market in such investments and how would I go about it?
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locutus
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Post by locutus on Jan 16, 2017 14:25:28 GMT
I have a grandson aged 10. I have had the idea of buying him the freehold in a leasehold property with about 50-60 years remaining on the lease(s), to support him in his later years. Do any of you knowledgeable people know if this is feasible? Is there a market in such investments and how would I go about it? Are you talking about collecting ground rents? If so, then there is a very active market but this is one of those businesses that benefits greatly from scale otherwise it quickly becomes uneconomical. How much is the freehold and the annual ground rent? Would you be prepared to go to court if the leaseholder refused to pay? With ground rents, there are a lot of legal aspects to cover and if the amounts are small, it can be a lot of effort for little gain.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jan 16, 2017 19:28:20 GMT
I have a grandson aged 10. I have had the idea of buying him the freehold in a leasehold property with about 50-60 years remaining on the lease(s), to support him in his later years. Do any of you knowledgeable people know if this is feasible? Is there a market in such investments and how would I go about it? Are you talking about collecting ground rents? If so, then there is a very active market but this is one of those businesses that benefits greatly from scale otherwise it quickly becomes uneconomical. How much is the freehold and the annual ground rent? Would you be prepared to go to court if the leaseholder refused to pay? With ground rents, there are a lot of legal aspects to cover and if the amounts are small, it can be a lot of effort for little gain. I don't have any particular property in mind. There would of course be ground rent, but I was mainly thinking about the residual capital value of the property. Ideally I would choose a property with minimal rent and rent increases so that the capitalised value of the rental stream, and hence the price, was minimised, and the investment was a play on property or land values.
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hazellend
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Post by hazellend on Jan 16, 2017 19:42:15 GMT
Just buy a global stock tracker for him instead like VWRL Vanguard all world.
Much less hassle, and has plenty of time to "mature"
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