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London hostel, and timing LHR arrival with train connections

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Good afternoon, and thanks in advance for your help. I have two questions: one on London hostels, and one on LHR/train timing.

Preface -- I'm doing some numbers-crunching on a uni visit trip my daughter and I might make this fall. The whole trip will be budget-minded; we're used to traveling by backpack, staying at hostels, eating twice a day to keep costs down, etc. Pretty basic people. We can sleep just about anywhere, we don't need en suite rooms, and we don't have high food standards (a couple slices of toast and a cup of coffee for breakfast are just fine, and supper doesn't need to be much more than that; we buy food at markets or street vendors along the way and enjoy it on the move).

Question 1 re: London hostels

We'll spend just two or three nights in London, and we're considering Dover Castle Hostel & Bar -- thoughts? It seems to be centrally located (we love the London Bridge and Borough Market area!), and the cost is extremely affordable, especially for London.

http://www.dovercastlehostel.com/

Question 2 re: LHR timing/train connections

How much time would you allow for arrival into LHR, immigration, and transfer to Kings Cross? I've read that the transport itself is about an hour, but if our flight arrives on time at LHR at 9:35am, on a weekday, would it be reasonable to think that we'd be able to catch a 12:35pm train from LHR to Kings Cross ... and then Kings Cross on to Leeds?

We won't have any checked bags but we do seem to have a knack for getting lost. In fact, it happens so often that we expect it and just try to budget time accordingly.

In the past we've just used rail passes which were wonderfully convenient -- especially for people like us who get diverted from our path so often when we travel -- but they're pretty pricey, and we'd like to save pennies where we can.

Many thanks.

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