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Selling a flat with a short lease

Selling a flat with a short lease

When you own a house or flat with a lease extension process, there will be a phase where you will meet short lease issues. Owning a resident in a leasehold manner means that you’re staying in the resident for a certain number of years. The obstacle will arise if and only if you want to sell your property, and the number of years left on a lease is crucial throughout selling your property. Hence, if you get stuck in the same situation, we have a professional solution for you. Our lease extension experts can guide you through with efficiency.

What does short lease mean?

In general, a short lease is not that short term as it is said. Any lease that drops below 80 years is supposed to be a short lease. It is stated that the shorter the lease of a house, the lesser the value. Though, there are a few situations in which assets with short leases are also being sold.

Can you sell a flat with a short lease?

There is no such law about having the shortest length of the lease at the time of selling the leasehold property. Although, buyers are being dissuaded from purchasing a property lease that is shorter than 80 years. When the duration of the leasehold declines below 80 years, the lease extension cost increases conclusively. Hence, the lease with a short length is difficult to sell.

Usually, mortgage lenders will not accommodate flats with shorter leases as they will terminate before the head point of the mortgage. Eventually, the lease is short or not will rely on the conditions whether you want to sell the leasehold property or not. It can be a perplexing decision to be made.

How to check the lease of a property?

To know if your lease is shorter or not, you need to check your property lease. If you do not have the document of your leasehold house, then your surveyor or solicitor who examined your lease would help you out. If you need any help regarding how to check the lease duration, you can contact our chartered surveyors who can assist you. Hence, once you get to know the detailed information about your lease duration, it will be clear to figure out if your property lease has a short lease issue or not.

How to deal with Short Lease Issues

You can extend the short lease of your property: Leaseholders who own their house or flat have a statutory right to extend the property lease by 90 years. If you want to extend the short lease, then waiting two years more before applying to extend the lease is considered definite. 

If the past landlord owned the property for two years or more, you must ask him to serve the statutory notice to extend the lease as a state of buying which can later be allotted to you as soon as the purchase is done.

Buying your freehold: Once you buy the freehold of your leasehold house, then your property will convert to freehold. Hence, you can sell your freehold property, and the buyers can get a mortgage on it. 

Sell your apartment or resident to a cash buyer: Get a cash buyer for your property as they do not demand a mortgage. Therefore, it will not bother you if you have a short lease or not. 

By selling to a cash buyer, there will be several benefits, you will save the expense of purchasing or extending the lease, and you will not need any solicitor or surveyor to negotiate or guide you with the freeholder. 

Hence, if you didn’t get your solution about how to deal with your short lease, then you may schedule an appointment with our experts and have a valuation of your property quickly. They will guide your short-lease term issue and will provide you with the best solution.

Problems with a short-term lease

Usually, short-term lease issues occur when the owner cannot manage to extend their lease. Hence, such circumstances fall in limited substantial areas. Additionally, in such areas, the short-term lease properties are generally not immaculate and need renovation. Another main problem that occurs is the cost of ground rent and additional maintenance costs within the duration of the lease. 

And the most uncertain issue with the short lease is that shorter leases are hard to sell. The shorter the property lease, the lesser the value. Hence, the buyers or mortgage firms do not consider such properties of lesser worth. The bank and firms will also not provide mortgages. Hereafter, the exchange will be bound up to the cash buyers.

Are you facing problems during your lease extension process or buying or selling a freehold of a house? Call 01753542984 for a 10-minute free consultation and talk with our lease extension specialists to solve your issue.

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