Leasehold properties can present challenges when it comes to selling, particularly if the lease is short. Unsure about your next steps as a leaseholder? Here’s what you need to know.
🔍 What is a short lease?
A lease is considered short if it’s 70 years or less, though some lenders set the threshold at 80 years. Longer leases typically command higher property values. Be sure to check the exact lease length before purchasing.
🏠 Selling with a short lease
When it’s time to sell, options include extending the lease or finding a buyer willing to take on a property with a short lease. Some buyers, like retirees seeking affordable housing, may be interested. Short leases can also appeal to buy-to-let investors looking for rental income.
🏦 Mortgages
Securing a mortgage for a short-lease property can be tough, so cash buyers may be necessary. Many opt to extend the lease before selling to attract more buyers.
📜 Lease extension
Extending the lease increases marketability and value. There are informal and formal methods. Informal extensions involve negotiating directly with the freeholder, while formal extensions offer statutory protection but take longer.
💼 Selling as a freeholder
If you’re the freeholder, you may need to offer the leaseholder the right to buy the property before selling to a third party. This is the Right of First Refusal.
🏡 What should you do?
If you’re selling a property with a short lease, consult a local Guild Member for expert advice. They’ll help determine a fair price and create a tailored marketing strategy.
Navigating the sale of a property with a short lease can be complex, but with the right guidance, you can achieve success. Reach out today to learn more! #PropertySales #LeaseholdAdvice #RealEstateExperts”
