Finding short lease property deals on EIG

Buying a property with a short lease can have both advantages and disadvantages. The suitability of such a purchase depends on your specific circumstances and long-term goals. Here are some potential benefits of buying a property with a short lease:

Lower purchase price:

Properties with short leases typically sell for lower prices compared to those with longer leases. This can be appealing if you're looking to get a foot on the property ladder or invest in property at a lower cost.

Opportunity to negotiate:

Sellers of properties with short leases may be more motivated to negotiate on the price, potentially allowing you to secure a better deal.

Investment potential:

If you can negotiate a lease extension or if there's a possibility of purchasing the freehold, you might be able to increase the property's value over time. This can be an attractive investment opportunity.

Flexibility:

Some buyers may not be concerned about the lease length because they plan to use the property for a specific short-term purpose, such as a vacation home or a temporary residence.

Short-term commitment:

A property with a short lease can be a good choice if you don't want to be tied down for an extended period, as it offers a shorter-term commitment compared to properties with longer leases.

Potential drawbacks:

It's important to consider the potential drawbacks of buying a property with a short lease, including:

Limited financing options: 

Lenders may be reluctant to provide mortgages for properties with very short leases, making it more challenging to secure financing.

Lease extension costs:

If you plan to extend the lease, you'll need to factor in the additional costs, including lease extension fees, legal fees, and potential ground rent increases.

Uncertain future costs:

With a short lease, you might face uncertainties about future costs, including ground rent, service charges, and potential major repairs.

Limited resale value: 

The property's resale value may be negatively affected by the short lease, which can make it harder to sell in the future.

Potential legal complexities:

Extending the lease or purchasing the freehold can involve legal complexities and additional costs, and the process may not always be successful.

Before buying a property with a short lease, it's essential to consult with a solicitor and do your due diligence. Using our website, you can filter out the potential deals and a solicitor can then provide advice on your specific situation and help you navigate the process associated with buying a property with a short lease.