Seeing Potential: Investors in UK Residential Property Can Use the Leasehold Enfranchisement Rules to Make Extra Returns
The property market in the United Kingdom, in particular in London, is currently a “hot spot” for residential purchasers.
Savills’ quarterly index for June–December 2009 showed that international buyers accounted for 51 percent of all buyers at the beginning of the year. Although there has been no particular research for an index to identify the number of international investor homeowners, there seems to be a significant number of overseas homeowners who have purchased their flats for investment purposes only — for example, in areas of London such as Mayfair and Chelsea.
The English landowning structure is peculiar and essentially unique. In effect, when property is bought in England it is bought either on a freehold basis or you acquire a long lease of the property. Long leases are usually for terms of 99 or 125 years and you usually pay a g