There has been a lot of bad press recently regarding new house builders selling new homes as leasehold properties. I am sure this is not only confined to Barratt, however I have a query which someone out there ay be able to help.
When buying a Freehold reversion I am told that the valuation is dependent on 'market forces' determined by 'institutional investors'. This is usually expressed as a multiple of the ground rent.
This is slightly different to purchasing the Freehold reversion say from a private leasehold company where usually the valuation is based on house price, length of lease and ground rent which more often than not works out cheaper.
Recently, I have encountered a problem where I purchase the Freehold Reversion at the point of sale at 33 times Ground Rent only to find that my neighbours who didn't exercise this option at the point of sale are now being offered the same Freehold Reversions at 20 times Ground Rent (a 40% reduction!) only eight weeks later.
I am having to put this down to bad timing however, has anyone else encountered this problem? Particularly interested in anyone who has recently been quoted a price for a Barratt Freehold Reversion, the date and the multiple of ground rent it was valued at.