BTL investment advice. new build vs old

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    BTL investment advice. new build vs old

    Hi All,

    I am after some advice / opinions from those that have experience in this area.

    I am in the process of buying a property in a new-ish build. My aim is to hold onto it for 5-10years, live in it eventually and sell it on and make a profit. It was built in 2015. During the buying process my solicitor (and I) have learnt that the service charge went up in the last year (expected) and the ground rent increases every 10 years by RPI.
    it is currently £250 pa and due to increase in 2024. I did a quick RPI calculation and found it to be ~£300 at the moment. I am now quite anxious about investing in a property in a new ish build given the lease (118yrs), increasing sc and gr. there have also been multiple section 20 letters sent recently with no quotes on costs of the works that will be carried out (which also scares me).

    I have been reading up on the pros and cons to buying new(ish) build vs freehold/converted flats and they all give me the same answers. The problem is the freeholds in the areas I’m looking in are quite significantly more expensive than new purpose built flats (which goes against all the articles I have read).

    my questions are:
    1) if I buy this flat now, do you think the increase in sc and gr in the next few years decrease the value of the flat / make it harder to sell?
    2) is it wise buying an older new build or will I at this point have lost the benefits of a new build?
    3) is a converted freehold maisonette better investment for me in the long run? I am focusing on location so hoping the value will go up with time.

    thank you

    Sarah

    #2
    I would avoid leasehold …..

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      #3
      I would avoid leasehold as an investment too

      It doesn't help that you say how important the location is - then expect everyone to come up with magical answers not knowing the location
      My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

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        #4
        Thanks for your responses. Location is in West London (Wembley specifically) which is undergoing regeneration at the moment, so I'm hoping the value of the flat will go up because of that. but I don't want to be stuck with an unsellable flat because of the leasehold and expensive ground rent in the next 10 years because of changes in laws (such as the current GR debacle).

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          #5
          All flat with ground rent increasing every 10 years cannot get a mortgage. Make a complaint to CMA which had managed to persuade 4 developers to amend their leases. Taylor Wimpey have set aside £130 mil for correcting their leases.

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