Will your property hold its value? It’s not just about the market

We tend to think that the value of our property is based on two things: what other properties in the area are going for and what our purchaser wants to pay.

But the terms on which we own our property matter too. That’s where we come in.

Recently, I advised a client not to buy the flat that he really wanted, even though it meant losing my fee under our “no sale no fee” promise. The lease terms were so one-sided in favour of the landlord that it could have been difficult to sell on, or mortgage, in the future.

Although the landlord’s agents told my client that I was going “over the top”, my client took my advice and walked away.

I wonder how many buyers of new leaseholds are now regretting not doing the same. Recently, Nationwide announced that it would no longer lend on properties where leases provide for ground rents to double every ten years or where the rents are more than 0.1% of the property value. Other lenders are following suit.

Just because a property can be mortgaged now does not mean a buyer will get a mortgage on it in the future. And a property which can’t be mortgaged is a property which will be much harder to sell.

Our wide-ranging experience of property transactions means we know a bad deal when we see one.  And you can rely on us to act in your best interests.