own a flat in a block of four all two bedroom apartments which i let out. It is a somewhat unusual lease as the leaseholder takes care of all the maintenance and insurance of their own flat as well as the outside grounds. There is ground rent goes up £275 every ten years which is a pain. One other apartment has come up for sale (with a garage) and is a very nice flat though the only difference to my flat it doesnt have central heating or a garden. It is reasonably priced and already has tenants in the flat and been offered the furniture etc and is in a good area. The Gross Yield is 9% and the Net Yield around 4%. All leases in the block have 950 years remaining on the lease.
Now,I am risk averse, is there any risk you forsee having two flats in one block. Secondly, I would have the option of purchasing the freehold as I will own 50% of the block. Is it worth spending thousands and thousands of money buying the freehold of a flat. Does it provide any real benefit
Secondly, with the freehold means more responsibilities and I guess hassle with dealing with the other two parties in the block.
Any advice would be welcome as just in two minds. I do want to buy the flat and just weighing up the pros and cons of purchase as well as the risk involved. Thanks