Back in the good old days, the government made money available to update and convert sub-standard housing. The result was that lots and lots of flats were created - many of which were sold with the benefit of new ninety nine year leases.
Ninety nine years is a long time in anybody’s book, so investment in such properties seemed like a really good idea. And it was. The price of property has rocketed over the past thirty odd years. We have first hand information about a particular property located in Leyton, East London, which was sold for £17,250 in 1982 and resold this year for £280,000 – although it is hard to imagine that such an amount would have been achievable without the leaseholder having first negotiated a lease increase with the freeholder.