Selling a house with a short lease

The path of selling a flat is indeed fraught with challenges, more so when the sands of time are against you and you are left with 80 years or less on your lease.

Fear not, as the Guru of selling the seemingly unsellable, I offer you enlightenment and a gateway to solutions most fitting.

Whether the universe points you towards the swift certainty of a cash sale or the dynamic realm of an auction, together we shall uncover the path that aligns with your destiny.

Selling a flat with a short lease in the UK can present several challenges and issues, both for the seller and the potential buyer. Here are some of the key issues to consider:

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Lower Market Value

Flats with short leases (typically those with less than 80 years remaining) are often worth significantly less than those with longer leases. This is because the property’s value diminishes as the lease gets shorter, which can lead to a lower selling price.

Difficulty Finding A Buyer

Many potential buyers are wary of purchasing flats with short leases due to the complications and costs associated with extending the lease. This can make it harder to find a buyer and can prolong the selling process.

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Mortgage Challenges

Buyers may find it difficult to secure a mortgage on a flat with a short lease. Many lenders have minimum lease length requirements (usually at least 70-80 years remaining at the time of application). Shorter leases are considered higher risk, making it harder for buyers to finance the purchase.

Cost of Lease Extension

Sellers might consider extending the lease before selling to make the property more attractive to buyers and to increase its value. However, the cost of extending a lease can be substantial and involves legal and valuation fees, on top of the price for the lease extension itself. The process can also be time-consuming.

Legal and Negotiation Complications

Selling a flat with a short lease can involve complex negotiations, particularly if the buyer and seller are trying to agree on who should bear the cost of the lease extension. This can complicate the conveyancing process.

Reduced Appeal To Investors

Investors or buy-to-let landlords might be less interested in flats with short leases, considering the additional costs and potential for future value loss, unless they plan on negotiating a lease extension as part of the investment strategy.

Inheritance Issues

For those inheriting a property with a short lease, the issues of selling or even retaining the property can be complex, involving legal advice and potentially unexpected costs for lease extension to maintain the property’s value.

Fear not, for though the path is fraught with difficulty, it is not impassable. With the right guide, solutions can be found.

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← Contents

Selling a house with a short lease

Lower Market Value

Difficulty Finding A Buyer

Mortgage Challenges

Cost of Lease Extension

Legal and Negotiation Complications

Reduced Appeal To Investors

Inheritance Issues

Next Steps

Answer a few simple questions

Get an estimation

Discover the solution

Get An Estimated Cash Offer With Our Free Calculator

“Nothing is so fatiguing as the eternal hanging on of an uncompleted house sale”

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