Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
I am a landlord and purchased a two bedroom flat in 2012. The Ground rent doubles every 10 years from 2011 linked to RPI. Ground Rent is currently a manageable £250 and in 50 years it will be around £4000 Ground Rent.
The Net yield on the property is very good indeed and make around 5K profit before tax on a 100K property.
My concern is the timing when to sell. I would like to keep the property due to the yield but back of my mind is the ever escalating Ground Rent which may make it unprofitable and unsaleable.
If I sell when the ground rent is £500 in 2022 then it could become a problem to sell the flat and maybe stuck with it or have to substantially reduce the price
I would appreciate other people’s views
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