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Buying a property with a 6 year lease as a way to save money.

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  • Buying a property with a 6 year lease as a way to save money.

    Hi there!

    My wife and I are in super saving mode in order to borrow as little as possible from the banks for the purchase of a property in exactly 6 years. However, seeing as we live in one of UK's more expensive cities, saving up is a real struggle without having to make huge sacrifices.

    Today while browsing the internet we have stumbled upon a property with a very short lease for sale (6 years), going for 20k in a decent area. We have the money to buy it in cash. By doing so we would be able to put away most of our salaries and over the course of those 6 years save up a huge amount of money for a deposit. However, all this seems to be too good to be true.

    What are the pitfalls here and what should we be double and triple checking? We were thinking of buying the remaining 6 year lease, staying there for its duration and then once it expires, simply move out, but again, we think this is all too good to be true. Reading up on the laws around this, we saw various resources say that once a lease expires, the ownership of the property goes back to the freeholder. We are worried if this would be as simple as that, if we would be allowed to simply walk away from the property after 6 years?

  • #2
    If I understand your question correctly, you're asking if you could just buy this flat and then hand it back to the freeholder when the 6 years are up. If this is your question, then you should consult with a solicitor. Any conveyancing solicitor (i.e. a solicitor specialising in property transactions) will be able to guide you here and sort out the purchase for you as well as tell you the implications of a 6yr lease.
    I am a Mortgage Advisor
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