diff --git a/rhodecode/config/config_maker.py b/rhodecode/config/config_maker.py
--- a/rhodecode/config/config_maker.py
+++ b/rhodecode/config/config_maker.py
@@ -122,9 +122,12 @@ def sanitize_settings_and_apply_defaults
     settings_maker.make_setting('vcs.start_server', 'false', parser='bool')
     settings_maker.make_setting('vcs.backends', 'hg, git, svn', parser='list')
     settings_maker.make_setting('vcs.connection_timeout', 3600, parser='int')
-    settings_maker.make_setting('vcs.git.lfs.storage_location', '/var/opt/rhodecode_repo_store/.cache/git_lfs_store')
+    settings_maker.make_setting('vcs.git.lfs.storage_location',
+                                '/var/opt/rhodecode_repo_store/.cache/git_lfs_store',
+                                parser='dir:ensured', default_when_empty=True)
     settings_maker.make_setting('vcs.hg.largefiles.storage_location',
-                                '/var/opt/rhodecode_repo_store/.cache/hg_largefiles_store')
+                                '/var/opt/rhodecode_repo_store/.cache/hg_largefiles_store',
+                                parser='dir:ensured', default_when_empty=True)
 
     settings_maker.make_setting('vcs.methods.cache', True, parser='bool')