Selling a flat with less than 80 years unexpired on the lease can be tricky – but little details like that do not matter to us. We’ll make you a cash offer for your flat, regardless of how long is left on the lease.
The majority of mortgage lenders will require the lease to be a minimum of 75 years when offering mortgages, however some will require 80 years unexpired too, and leases which are shorter will need to be referred to the bank’s surveyor.
When you lease dips below 80 years, the flat’s value starts to reduce – and every day, it becomes less desirable to regular buyers and mortgage lenders. But we buy flats just like yours all the time – we are unconcerned by the length of the lease and we account for this in our property valuations.
We’ll make you a quick, cash offer for your short lease flat – regardless of condition or type of property. Unlike other property buying companies out there, we won’t ask to speak to your freeholder about our costs to extend the leasehold once it’s ours. We’ll buy your property, quickly painlessly, in a timeframe that suits you.
The freeholder is entitled to receive compensation for the loss of the ground rent income to be paid under the current lease, together with the loss of the right to receive the value of the flat at the end of the current lease.
In simple terms, this is the difference in value of the landlord’s interest today under the present lease, and the value of his interest after the grant of the new lease with the additional 90 years. He is also entitled to receive a share of the marriage value and compensation for loss arising from the grant of the new lease.
The need for your lease extension arises because as your lease gets shorter the value of your flat (or maisonette) will go down compared to a similar flat which has a long lease of, say, 100 years or more. Plus, as the length of the lease reduces, the lease extension premium payable to the freeholder increases. This reduction in value is much less pronounced in the early years, but it’s when your lease gets to less than 80 years remaining that the real problems start.