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Advice please- buy to let but lease needs renewing
SparkyG
Posts: 341 Forumite
Advice wanted please, as I am new to this!
Want to purchase and let a 2 bedroom flat as an investment, and for monthly income. I am a cash buyer. Not much on the market at the moment, and I am in no hurry apart from worry about prices rising, and wanting to get my money working for me asap.
I have seen a flat which I think would make a good rental investment and which is very reasonably priced, but only has 68 years left on the lease. The estate agent says the vendor has the money available to renew the lease (£1200), but won't start the process until she has a buyer. The sale would be on condition the lease is renewed. If she can't get a buyer she will stay put. The agent says the whole process will take 3 - 4 months. My worry is that I can have my offer accepted, spend money on solicitor's fees, and then find that for some reason the vendor pulls out, months down the line, maybe because property prices have risen, or for some other reason.
My heart is saying the flat is a good buy, but my head is saying don't touch it!
Opinions please.
Want to purchase and let a 2 bedroom flat as an investment, and for monthly income. I am a cash buyer. Not much on the market at the moment, and I am in no hurry apart from worry about prices rising, and wanting to get my money working for me asap.
I have seen a flat which I think would make a good rental investment and which is very reasonably priced, but only has 68 years left on the lease. The estate agent says the vendor has the money available to renew the lease (£1200), but won't start the process until she has a buyer. The sale would be on condition the lease is renewed. If she can't get a buyer she will stay put. The agent says the whole process will take 3 - 4 months. My worry is that I can have my offer accepted, spend money on solicitor's fees, and then find that for some reason the vendor pulls out, months down the line, maybe because property prices have risen, or for some other reason.
My heart is saying the flat is a good buy, but my head is saying don't touch it!
Opinions please.
:beer: My glass is half full :beer:
0
Comments
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There isn't much point waiting for the vendor to renew the lease. Make an offer based on the current value and allowing for the cost of renewal in a couple of years time when you can renew without it causing any delay.0
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Either do as anselld suggests, though of course you can only estimate what it will cost you to extend the lease yourself in 2 years time.
Or make your offer and wait till the vendor extends the lease since you are in no hurry. Instruct your solicitor not to proceed (and incur costs), until the lease extension is completed.
Yes, there;s a risk the seller will change their mind or find a better buyer, but if you minimise your costs, and are in no hurry, so what?0
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