New-York tribune., 1901-05-25
LONDON RENTALS
CONTRASTS BETWEEN AMERICAN AND
ENGLISH REAL ESTATE HOTO.
INGS. WITH 4 GLIMPSE OF
THE UNEARNED IN
CREMENT.
London. Nav *

An American owning property in New-York
and forced by circumstances suppose the
Engshmau would say privileged by fortune
20 i've in London is impressed with the con-
trasts offered by real estate tenure in the -uo
cities. His property at home under CHARGE ~
agents. probably yields little if anything. The
taxes are heavy and leave no margin for inter
est on the investment made: now and aqair
there is special assessment for roadway nave
nent or street opening which throws the hal
ance on the wrong side; repairs are unceasing
and are charged exclusively to his account. thu
tenant expects him TO mend every broken zvi,
dow, 10 clean the furnaces and to keen carmen
ters. nasons, painters and plumbers constantly
in attendance; and he is fortunate indaaa 20
the property which he has left in the barsr =.
agents be anything but a source of anpox,o,oo
and expense. On the other hand he bir,salf
must be tenant in London and be left a+ tba
mercy OF English law and usage. While he is
doing everything for his American tenants siro
the law is on their side and against hin, bo .,
al the mercy OF his English landlord who ie
protected IN every way and enabled - sa5,,o
responsibility for repairs and taxAs r,o a.
occupler- AS soon as he has anv prac+ica1 ~,
per1ence as a tenant in London. he understand.
why there Is profit in land holding in England
whereas in America holdings in real estate .ra
ueooliI-s more uncertain year by year and pru-
dent men find land an Improbable investment
TIE ordinary form Of lease for an unfurnished
house in the West End of London rms +o-
tTenty-one years. The tenant has the privilege
Of breaking il al the end of seven and again ar
the close Of fourteen years. and when ba ..1-..
possession OF the house the outgoing occuniar is
required TO put il in order for him paintine II |
INSIDE and outside, papering and decorating the |
walls, repairing the roof and the drains but /
making no improvements unless the contract |
calls for them. The tenant assumes the obliga- |
ton Of paying the local rates, or taxes. which |
ordinarily amount TO one-third Of the rent and |
also Of keeping the house in repair and Of put |
ting il in order for the next occupier. The lease
requires him TO paint the house at least once in
three years, but the landlord does not enforce
IRIS provision rigidly, being content with the
tenants liability 10 put the property in order for
the next occupier The landlord receives his
rent and the tenant pays the taxes and makes
all repairs. II the tenant chooses to avail him
self Of the option Of giving up the lease at the
enc OF seven or Of fourteen years, he pays what
is generally equivalent 10 q years rent in set
ting the premises in order for the next occupier
he improves the house during his tenancy
i IS at his own cost, and unless he can obtain
premium from the next tenant his money is
permanently invested for the benefit of the land
lord The Duke Of Westminster. the Duke Of
Bedford and other large Ian Iholders own square
miles OF land in the West End On this land
houses have been built on ninety-nine year
leases, at the expiration OF which everything
reverts 10 the ground landlord. These leasehoId-
ers are the landlords with whom tenants deal.
and they are protected in every way. The ten
ants bear the burdens Of local taxation and
are at the entire expense of repairs. even II a
house has to be reroofed or the drainage system
renodelled- The law favors the landlord ex-
cusiVeiy, and is entirely against the tenant.
CHEAP ONLY IN NAME.
The foreigner, when he comes to London.
hears much about the cheapness Of house rents,
but when he gains practical experience he finds
so many offsets that he disnisses the notion as
an Illusion When he inquiries for a house in a /
good locality within a short distance Of Hyde |
Park, he finds the rentals varying from f2O0 to
900 for q moderate sized house. In a majority |
Of instances a premium is asked ranging from |
300 upward. This premium. if paid. will be |
capitalized rent in a lump sum. Il Will repre- /
sent increased valuation due 10 the improve |
ment Of the house or Of the neighborhood. If a /
tenant on tWenty-one years lease has put in |
electric light, renovated the drainage system |
or otherwise improved the property, he demands |
premium in order TO reimburse himself and |
the incoming occupier must pay 81 before he can /
be put in possession. Any marked improve |
ment in the residential section during the ten |
ancy IS also regarded valid foundation for |
z premium. The rent is not raised. and conse- |
quently the local rates are unchanged. but the |
premium is a fixed sum. which has TO be paid |
down before the house can be secured. In ad- |
dton 10 the premium. there is claim for |
fixtures such as electric light globes and stands, |
window blinds curtain and picture rods etc. /
This ranges from ESQ 10 f4O0 and is ordinarily |
settled by a compromise Of some kind after a /
valuation by experts. Having paid the premium |
and settled the bill for fixtures, the tenant is |
entirely responsible for taxes and repairs. When |
the lease expires, or is broken at the seven or |
fourteen years stage. he is under obligation to |
expend a years rent in putting the house in |
order for the next tenant. When the premium, |
fixtures repairs, taxes and expenses at the |
close OF the tenancy are reckoned up, the simple |
minded foreigner has ceased TO regard London |
rentals either cheap moderate
The most economical method Of getting a |
good house in London, if one has the capital |
requisite for investment. is that OF pur-
chasing the unexpired remainder Of the lease |
outright. When the interest OF the investment
Is added TO the cost OF repairs the local rates
and the ground rent, the average sum for a |
period Of years Will be moderate rental The
Purchaser is at once his own landlord and ten
ant and If the Ieasehold be for a long term he |
can sell it before the expiration Of the period |
and get back the bulk Of the purchase money.
Having once repaired and redecorated the house
and put il IN sanitary condition. his annual
expenses for local rates and ground rent VIII De
inconsiderable. If the lease has nearly out
the valuation viii be low, for upon the expira-
ton Of the term the property reverts TO the
ground landlord without compensation TO the
owner Of the house A long leasehold of well
built borre an q rasbtons hla district can hardly 4