The quick and easy Property Buying Service
If you own a flat with a short leasehold, or are considering buying one, is it a good move? We take a look at some of the key issues surrounding short leasehold flats and whether owning one could be problematic.
Like many other areas of business, the property buying and selling world is full of special terminology and jargon. It all makes sense when you know what it all means, but if you’re still getting to grips with everything, it can be confusing. In this post we’re going back to basics and taking a look at the lowdown on property leases and what they mean to buyers and sellers.
Selling a leasehold flat can be challenging; particularly when you have less than 80 years left on your existing leasehold. The main issue is that the value of your home or property will begin to lose value as the time period of the lease reduces. Buyers can find it difficult to get a mortgage from lenders and in turn, you could be left in a frustrating situation. However, you should be able to apply for a lease extension of an additional 90 years. So let’s look at the lease extension process in greater detail.
Quick property sales can be a bit challenging; particularly if you’re not familiar with all of the choices available. Whether your sale needs to take place to free up cash, or you’re relocating to another part of the UK, there are several routes which you could take. Let’s look at some of the most common options.
We know that repairs, maintenance and improvements need to be carried out within apartment buildings and flats. These may be relatively small costs but from time to time they can be much larger. Occasionally there can be instances when leaseholders are forced to pay out ridiculously large sums of money. One particularly shocking recent case was from Oxford in early 2016. Around 50 leaseholders in an apartment block were asked to pay an eye-watering £50,000 pounds each.
One of the most important concerns you need to take into account when selling a leasehold flat is the number of years remaining on the lease. Shorter leases can lead to problems when you try to sell your flat.
If you are selling or even thinking about selling a leasehold flat you should be concerned about the remaining number of years left on your lease. Put simply if you have 80 years or more on the term of your lease then you should be fine. Mortgage companies are happy to lend on leasehold properties with over 80 years remaining and this in turn means that there is a market of ready buyers. If you have ready buyers then you should be able to achieve a sale at open market value.
The complications begin once a property has 80 years or less remaining on the lease.
The sale of my property was well managed with regular communication and advice and support provided throughout the process. The company also provided legal support through one of their panel solicitors which was professional friendly and reassuring during what was a complex sale. They are trustworthy and reliable and I would recommend this company to anyone looking to sell their property. Thank you for making this a much easier process.
R. Mangal, Leyton, London, E10
