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Advantages of Leased property?

Hello, Supposing a leasehold property only had say 20 years remaining on the lease. What would be the point of buying this?..Would the price of such a property be significantly reduced?

Asked on Oct 11 2013, General in Cheltenham | Report content

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  • Most leaseholds can be extended. Its a bit of hassle and costs a bit. Type in to Google leasehold enfranchisement and see what you find. You might be able to buy it cheap then extended the lease by enfranchising and make a tin of cash! Good luck

    Answered on Oct 12 2013, Report content
  • If the property rented out for £10k per year and you could buy it for £15k. This would be the benefit; or if you were happy to rent it for that period of time and the price suited you. The other benefit is that your rental price is locked for the entire period wheras shorter tenures are likely to see price rises at least in line with inflation. Enfranchisement would be massively expensive. The freeholder gets possession in 20 years so the price of the extension will not be cheap. When a lease has 80 years or less the (marriage) value rises with each passing year. If you are loaded and you are expert in the valuation of lease extensions. There may be profit in it.

    Web reference: http://www.diligentinvestments.com/repossessions/

    Answered on Oct 14 2013, Report content

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