Is it worth buying a 1 bed flat for £217,000 in Streatham with a £1600 service charge, 100 year lease then buying a 1 bed maisonette in Northolt for £210 000 with no service charge and 950 year lease?

[paige8039]

Is it worth buying a 1 bed flat for £217,000 in Streatham with a £1600 service charge, 100 year lease then buying a 1 bed maisonette in Northolt for £210 000 with no service charge and 950 year lease?

No. Because it is going to progressively lose value with that lease rather than gain value. We bought with a low lease and ended up having to extend it for thousands.

Do you mean buying one then buying the other? Without knowing the areas, I'd just buy the second one, it sounds loads better on paper unless you're expecting the first one to appreciate massively to make a profit before buying the second one. Extending a lease costs a lot. A 100 year lease used to be seen as pretty good, but it's not anymore.

Do you mean buying two properties as you say ‘then’ or do you mean ‘than’?

Than, one or the other.

The lease extension might cost £4,000 but Streatham is a much better area than northolt even with the service charge is think

Streatham over Northolt in terms of area, tbh.

I would worry about the lack of service charge on the Northolt one- it means there is no sinking fund for major works, and, if leasehold, you might end up with some major bills that haven't been accounted for.

I’d choose Streatham. I am in Whyteleafe, not too much further out, lots of 1 bed flats here and 2 train lines. Nice area. I’d avoid Northolt personally.

Streatham will increase more in value. The service charge is really not that much.
Are you likely to live here a long time?

It is going to depend so much on the individual flats, and where you want to live! And what you get for the service charge tbh.

One flat could be twice the size of the other, or have a garden. One could be an hour’s commute from work while the other is 30mins. One could be in a lovely well-maintained conversion, or in a luxury block, while the other is in an LA block with drug problems.

Could be an LA block - central budget so no sinking fund, just retrospective bills for major works. I’d rather the money was in my account gaining interest than in Lewisham Council’s pocket.

Yes i will live there long.

950 year lease with no service charge is obviously a much better option than 100 year lease with £1600 service charge.

Depends where you would rather live though and the size of the flats?

The size of the flat is the same but the property in northolt needs a refurb and is less desirable area and it's an easier commute from Streatham as I work in central London.

Ok now with more info I would say Streatham then. Could you pay the £4K immediately? If so get the current buyer to start the process so you complete it after completion. Low lease is the only thing that would concern me. our flat is SW London and has hugely increased in value o extending the lease was vital for us

And the £1,600 annual service charge wouldn't deter you?

Streatham as more desirable for you and doesn’t need a refurb. Service charges can obviously go up though. Is the one in Northolt overpriced - is that the price it’s on for or the price you’ve offered? I’m only wondering if overpriced in comparison to Streatham as both seem low cost for london.

Service charge seems reasonable and 217k its really cheap for 1 bed in streatham tbh, so i would check why, does it have cladding maybe?

Is it really Streatham or more like Norbury

Get a quote for the cost of extending the lease first. It can cost tens of thousands of pounds! You should be able to get a rough idea online.

I didn’t know you could get flats for that price in London still! They seem very cheap