Bob Kingston

“The company was incorporated by our father in 1969. It has been operated by myself and my brother since his death in 1989. At that time the turnover was c£20K and we have grown the company by acquisition of individual and small blocks of freeholds to the current rent roll of C£65K.

My background is that of an accountant and my brother is an insurance broker and we have found that our skill sets have complimented each other for the benefit of the business which forms a substantial part of our pension provision.

I have completed an analysis of the impact the proposed legislation will have on us and have ascertained that the immediate effect of the proposed legislation (ie capping ground rents at £250) will reduce our rent roll from £65,395.96 to £59,630.62.

We invested a considerable part of our pension in freehold ground rent investments rather than “real” property as we took the view that a few defaulters would not have a significant effect on income.

If we had invested in a portfolio of commercial/domestic properties one bad payer could have had a very dramatic effect on income. Income was underpinned by a tried and tested legal framework which had been established for hundreds of years and was entered to by leaseholders of their own volition. We also took the view that we were continuing a legacy which our father had passed to us and we would be able in turn to pass to our children.”

Bob Kingston, The Dobern Properties Group of Companies