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Original poster

What would happen if you bought a leasehold property with 34 years remaining

56 replies

soupyspoon · 07/10/2025 19:44

Assuming its likely you're going to live around another 20 years.

How cheap would it need to be to be a valid financial option?

If that flat was left in an estate, would the beneficiaries be able to renew the lease, or in fact could you renew the lease after you bought it?

OP posts:
Ellmau · 07/10/2025 19:49

You wouldn't get a mortgage.

You can extend it, but it would be very expensive to do so.

TwoUnderTwitTwoo · 07/10/2025 19:51

It depends. You wouldn’t get a mortgage on it but you could probably (hopefully!) extend the leasehold to 999 years. Hasn’t the government made this much easier in recent years? I did this with mine 10 years ago now and it was pretty straightforward, but we had an absentee landlord etc

User0ne · 07/10/2025 19:51

Unless the lease can be extended (to at least 100 years) then it's essentially worthless.

If you can get it cheaper than rental costs (plus what you'd expect it to cost in maintenance) then it may be worthwhile if you're considering renting as an alternative.

TwoUnderTwitTwoo · 07/10/2025 19:53

I think this would be better posted on legal and you should have a chat with a solicitor who deals with this sort of thing every day… ignore my previous post as a quick google search about extending leaseholds shows that I really am not at all clued up on this!!

Lonelycrab · 07/10/2025 19:54

Having been in the position of renewing a lease in London (albeit a lot longer than that-68 years) the actual amount you’ll pay to renew for a decent amount of years will be proportional to the time left. In our case it was 25k and that was a decade ago but the flat itself was fairly high value. I would imagine having only eg 15 years left on the lease the extension costs will be eye watering, but it will all depend on the overall market value of the property.

In terms of what a short 35 yr lease property is actually worth.. probably less than half the value of a “normal” lease sale situation, perhaps more. Hard to say without knowing the property and area.

Just my 2p.

Blackbookofsmiles1 · 07/10/2025 19:54

With 34 years the property is practically worthless. It would cost more than the property is worth to extend the lease I would imagine.
Nothing but a headache I would assume and just not worth it.

Original poster
soupyspoon · 07/10/2025 20:14

Ellmau · 07/10/2025 19:49

You wouldn't get a mortgage.

You can extend it, but it would be very expensive to do so.

No, theres no intention to try for a mortgage for it!

Im just wondering about the maths of something where you may essentially lose the property due to the lease expiring but if its really cheap to buy.

If you're assuming youve got around 20 years or less left to live

OP posts:
Original poster
soupyspoon · 07/10/2025 20:16

Blackbookofsmiles1 · 07/10/2025 19:54

With 34 years the property is practically worthless. It would cost more than the property is worth to extend the lease I would imagine.
Nothing but a headache I would assume and just not worth it.

So in this hypothetical situation, a flat worth 60k, which a person would live in for lets say 20 years, would cost them overall 3k a year?

But then of course the service charge on top but that isnt in the details for the property.

OP posts:
Lonelycrab · 07/10/2025 20:29

I think if you’re not needing a mortgage then it might actually make a lot of sense if you look at it as a (very) long term rental rather that something you’re owning outright iyswim. It’s what it’ll be essentially.

Round my way in the SE a very uninspiring flat is at least 1k a month in rent. So over 10 years, 120k, probably more when you take into account inflation.

DrySherry · 07/10/2025 20:30

I can see the reasoning behind this - as long as you accept its worthless at the end then why not. If it's in serviceable condition for the remaining lease it would be so much cheaper than renting

NotableI · 07/10/2025 20:36

I saw a flat in Pimlico with a short lease left, but was priced so that it would still work out much cheaper than renting the equivalent property over the course of the 34 years (or whatever it was).

If you’re not bothered about leaving an inheritance to anyone, working out the equivalent rent might be a good way to think about it?

Of course you’ll still have the maintenance costs.

Lonelycrab · 07/10/2025 20:38

NotableI · 07/10/2025 20:36

I saw a flat in Pimlico with a short lease left, but was priced so that it would still work out much cheaper than renting the equivalent property over the course of the 34 years (or whatever it was).

If you’re not bothered about leaving an inheritance to anyone, working out the equivalent rent might be a good way to think about it?

Of course you’ll still have the maintenance costs.

Of course you’ll still have the maintenance costs

Yes, ground rent, service costs and any potential work you may be liable for also has to come into the equation.

Tiredofwhataboutery · 07/10/2025 20:40

I think it’s the same gamble people take on moving into these lodge type park homes. High service charge, will need replaced if you live long enough. If you genuinely beleigevyhe lease will outlast you and all in it’d cheaper than renting then why not?

BlueScrunchies · 07/10/2025 20:57

Lease extensions aside and assuming you can buy cash and accept the risk of buying with a short lease.

I would think of it as a long let and compare the cost of purchase + ongoing charges to market rate rent for an equivalent property (including inflation) for the 20 year period you expect to inhabit the property.

Original poster
soupyspoon · 07/10/2025 20:58

BlueScrunchies · 07/10/2025 20:57

Lease extensions aside and assuming you can buy cash and accept the risk of buying with a short lease.

I would think of it as a long let and compare the cost of purchase + ongoing charges to market rate rent for an equivalent property (including inflation) for the 20 year period you expect to inhabit the property.

Thats what Im wondering

Yes it would be with cash

OP posts:
Original poster
soupyspoon · 07/10/2025 21:00

Lonelycrab · 07/10/2025 20:38

Of course you’ll still have the maintenance costs

Yes, ground rent, service costs and any potential work you may be liable for also has to come into the equation.

Show quote history

Yes there some service charges on flats like this which are through the roof, around 300 a month or something, over 20 years, and it will increase of course, that will cost a fortune

But if the service charges are less than 100 a month and of course they normally include buildings insurance, then it may be worth it.

OP posts:
HepzibahGreen · 07/10/2025 21:05

But what happens if you are living in a flat and the lease runs out? Do you have to move out? Who owns it then?
It’s such a weird system reallly.

ozarina · 07/10/2025 21:11

Does it not have to be a group decision for the block ? Was in one where we all voted but decided against it but we had 89 years. People were trying to get around landlords having to give permissions for letting and charges.

Zov · 07/10/2025 21:15

It's for this reason - the fact flats are generally leasehold - that I would never EVER buy a flat.

Not much help sorry, but, as has been said, a 34 year lease is a bit useless really... It was cause such a headache for any beneficiaries. It would be almost worthless.

Zov · 07/10/2025 21:15

HepzibahGreen · 07/10/2025 21:05

But what happens if you are living in a flat and the lease runs out? Do you have to move out? Who owns it then?
It’s such a weird system reallly.

I know right!

Tiredofwhataboutery · 07/10/2025 21:17

HepzibahGreen · 07/10/2025 21:05

But what happens if you are living in a flat and the lease runs out? Do you have to move out? Who owns it then?
It’s such a weird system reallly.

It is odd, isn’t it. Apparently it depends so you might be able to stay on paying fair or market rent. You can apply for a new lease but I’d expect premium to be high. If you don’t leave freely they can apply to court to evict. I do wonder what happens in the case of an absent freeholder

Original poster
soupyspoon · 07/10/2025 21:22

HepzibahGreen · 07/10/2025 21:05

But what happens if you are living in a flat and the lease runs out? Do you have to move out? Who owns it then?
It’s such a weird system reallly.

Yes I dont understand that bit. Some of these flats are virtually unsellable and many at auction where I presume perhaps they wont go for as cheap as advertised. But then no one's going to pay too much for them because of the lease thing

OP posts:
Catsinaflat · 07/10/2025 21:25

I sold my dad’s flat when he died. There was 45 years left on lease. I had to renew it and the cost of renewal was paid at exchange. The new lease cost 40k (Greater London). That was five years ago.

AllJoyAndNoFun · 07/10/2025 21:31

Zov · 07/10/2025 21:15

I know right!

Show quote history

The freeholder I think

AllJoyAndNoFun · 07/10/2025 21:33

DH and I saw a great one in zone 1 with 37 years on it and we were quite tempted because it was a bargain ( far far cheaper than renting and v low service charges) and I’ll be dead in 37 years so who cares? No pockets in a shroud.

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