A ground rent in Chelsea sold for more than three times its guide at Savills’ latest sale.
The firm sold 117 of 147 lots – an 80% success rate – and raised £31.8m, which was down on May’s total of £53.3m, March’s £38.5m, and last June’s £46m.
Director of national auctions Chris Coleman-Smith said: “There was good bidding. I don’t think the EU referendum made much difference at all.”
The ground rent on a terraced building in Chelsea, SW10, arranged as four flats sold for £46,000 – a 2.39% yield. It was guided at £15,000.
Coleman-Smith said: “Ground rents are popular. A lot of new buyers are going for them and building up their own small portfolios.”
Ground rents are relatively secure investments and can offer a good return over the longer term, he said, adding: “They are fantastic investments for children.”
Other properties that proved popular included a 0.3-acre parcel of land in Crawley, West Sussex, guided at £15,000, which sold for £50,000.
Competition for a freehold three-bedroom semi-detached house in Hounslow, Middlesex, pushed the sale price to £473,000 off a £270,000 guide.
An advertising hoarding in Clapham, SW4, let on a 999-year lease and producing £8,500 pa sold for £73,000 – an 11.6% yield.
The largest lot was a freehold terraced house arranged as three self-contained flats, all unlet. Guided at £1.2m, the property sold for £1.4m on behalf of a property association.
The sale took place at the London Marriott Hotel, W1, on 20 June.
