Is an offer 20% below asking price unrealistic?

SandyN21

Having sold my north London 4bed house early last year and renting in an area I love which is just outside London, I've viewed over 50 2-bed flats searching for my 'forever' one.  The perfect flat has now come up (just up the road from me) BUT with only a 55 years year lease and will need work as it is owned by an elderly person who now wants to move into 'assisted living'.  Would it be unrealistic to offer 20% below asking price to cover the cost of extending the lease and modifications.  

The EA has informed me that the owner had looked into extending the lease before putting it on the market but has now decided not to. 

I am also a full cash buyer. 

hazyjo

Surely it's already priced to reflect the lease - it would make an ENORMOUS difference to price and who could buy it.

theoretica

Won't the seller have more rights to extend the lease than a new buyer?  So an offer subject to the lease being extended might have advantages.

theartfullodger

Worth a try.

I did it. Forcefully and bluntly rejected "never been so insulted in my life"  Thanked agent calmly, politely.

Made same exact offer a week later.  Accepted.  Sold last year after 20+ years.

SandyN21

theoretica said:

Won't the seller have more rights to extend the lease than a new buyer?  So an offer subject to the lease being extended might have advantages.

I've been told that she doesn't want to go through the hassle. 

CSI_Yorkshire

You can if you like, nobody is stopping you.

"Full cash buyer" isn't necessarily the superpower some people seem to think it is though.

SandyN21

hazyjo said:

Surely it's already priced to reflect the lease - it would make an ENORMOUS difference to price and who could buy it.

I don't think it is.  I've viewed a 3-bed in the same development early in my search but at the time I thought it had far too much work to be done but it did have a lease of 110 years.  It was sold early this year for just £20K more for the asking price for this one (and since then property prices have dropped considerably). 

MeteredOut

Impossible to answer without knowing valuation. 20% below asking price could be 5% below valuation.

Although I'd say only the current owner can really answer it.

SandyN21

CSI_Yorkshire said:

"Full cash buyer" isn't necessarily the superpower some people seem to think it is though.

I thought it would be in this case as wouldn't it be impossible for anyone to get a mortgage for a property with such a short lease? 

youth_leader

My aunt looked at assisted living at Abbeyfield on the IOW - it's £1500 per month.  She was very nervous about paying that, and said it was a 'big decision'.  I suspect if she put her flat on the market she'd be trying to get as near asking price as possible - your vendor might be thinking the same. 

SandyN21

youth_leader said:

My aunt looked at assisted living at Abbeyfield on the IOW - it's £1500 per month.  She was very nervous about paying that, and said it was a 'big decision'.  I suspect if she put her flat on the market she'd be trying to get as near asking price as possible - your vendor might be thinking the same. 

So would I... but I bet your aunt's flat hasn't got only a 55 year lease on it.