Is a short lease on a property an advantage or a disadvantage?

Is a short lease on a property an advantage or a disadvantage?
March 17, 2019 Jessica Landale

We see it as a great opportunity!!

We purchased a leasehold property with a short lease in early 2018 and whilst the property did require some refurbishment, it had only 69 years left on the lease!!! The disadvantage of a short lease is that it makes it very difficult to secure a mortgage on the property, therefore meaning that any buyer would need to be in a cash buyer position and reducing the amount of buyers to which the property may appeal.

However, the team at Cosmo Grace are always looking for the opportunity in a situation and this just happened to be a fantastic one!!!! After various negotiations, we agreed a lease extension with the freeholder of 90 years (taking the total lease to 159 years), carried out the required refurbishment works and got the property onto the rental market.

 

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