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Buying over a property with a short lease

(3 Posts)
fruitqueen Sun 09-Mar-14 18:10:05

Is it worthwhile purchasing a property which has a short lease ? How much would it be to extend the lease normally ? Or is it dependent on the area the property is situated?

ShoeWhore Sun 09-Mar-14 19:45:38

How short? You may struggle to get a mortgage if it's below a certain number of years (this threshold varies by lender iirc) Unless things have changed recently, after a certain amount of time you gain the right to extend the lease for a fair price

We got stuck trying to buy an amazing (but totally unmodernised) flat with a very short lease many moons ago. Owned by an old lady who had sadly had to move into a care home - her family were selling it on her behalf to pay for the fees and were in the process of extending the lease. Even more sadly, the day after we viewed it she died and they lost the rights to extend the lease. The leaseholder (horrible man) then refused point blank to extend it and they had lost that legal protection. We couldn't get a mortgage on it with the short lease and neither could anyone else. It wasn't in a fit state to rent out or anything. I felt so sorry for this family - in the end a developer picked it up for a song for cash.

fruitqueen Mon 10-Mar-14 02:32:14

Say 10 years ? and what if the previous owner agrees to arrange for extension of the lease? Is the premium for the renewal a hefty sum usually?

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