News Archive

THE most recent indices of prime central London property values have shown a rise of just under 13% over the last three quarters. This "recovery" appears to be a result of both the low supply of good quality stock and the return of the overseas investor emboldened by the weakness of sterling. Whatever the cause, the effect is simple, the recent savings in premiums due to the large fall in freehold values between September 2007 and March 2009 are diminishing.

It is worth reiterating the simple fact that, all things being equal, the shorter the lease the more expensive the premium. Lessees are deciding to serve their s42 notices now to prevent their leases declining further.

WE have been inundated with instructions from lessees wishing to take advantage of the huge fall in freehold values.

The prevailing sentiment that the bottom is not far away and central London property is beginning to look affordable again is coinciding with the widespread realisation that a long lease is essential in order to maximise marketability.