General (main property discussion here) - 69 Year Lease on Flat - problem or not?

Hi All,

First post on this forum. :-)

What are peoples thoughts on buying a property to let with a 69years lease left? Property valued at 170k and will cost 10k to extend the lease. Purchase price is 170k.

Rent comes in at £750.

I am worried that if left the lease will cost even more to extend and if i want to sell on in a couple years i will need to extend lease before i sell. Its in a nice area and very rentable but above a shop which also limits your lenders and with 69 year lease...

a short lease normally reflects the price, so basicaly if you pay an extra 10k for an extended lease then just add 10k onto the value.

Personally, i would ask the vendor to extend the lease and you will pay the costs added to the mortgage, i.e. puchase £170,000 + £10,00 for lease extension = £180,000 purchase, with this it means you dont need to find the extra 10K.

However i fail to see how this is a good deal even with the lease extended.

Does your rent cover your mortgage?

Yup rent comes in at £750 but I can easy up to £800 and repayments at £615. Tenants are already in place.

My thinking was good investment to hold for 10years as will cover itself but that was before i found out about the lease.

Going to ask vendor to extend the lease and if she says no then drop my offer by 10k.