For many homeowners, selling a leasehold property is a straightforward affair—until the lease term starts raising eyebrows. If your property has a lease with fewer than 80 years remaining, it may present unique challenges that can affect both its value and marketability.
Here’s what you need to know when selling a property with a short lease:
⏳ Why Lease Length Matters
-
Properties with leases under 80 years are often less attractive to buyers due to difficulties securing mortgage approval.
-
The shorter the lease, the more expensive it typically becomes to extend.
-
Properties with short leases may appeal only to cash buyers or investors looking for a bargain.
�� Impact on Value
-
Short leases can significantly reduce a property's market value—sometimes by tens of thousands of pounds.
-
The cost of a lease extension is based on various factors including the property's value, lease length, and ground rent terms.
�� Your Options as a Seller
-
Extend the lease before marketing the property. If you’ve owned the property for at least two years, you're eligible to request a statutory lease extension.
-
Sell with a lease extension in motion. You can begin the extension process and legally assign the right to the buyer, making the purchase more appealing.
-
Adjust your asking price. If extending isn’t an option, pricing realistically is key to attracting serious buyers.
�� Legal Considerations
-
Work with a solicitor who specialises in leasehold law. The lease extension process can be nuanced and requires precise handling.
-
Be clear in your marketing materials and property details about the lease length and any ongoing negotiations.
⚠️ Top Tips
-
Transparency is everything. Don’t downplay the lease length—savvy buyers will check.
-
Timing matters. Starting the extension process early can save time and headaches later.
-
Cash buyers may be your best bet. Especially for leases under 60 years, targeting investors might be the only route to sale.
A short lease doesn’t have to be a deal-breaker. With the right strategy—and expert support—it’s still possible to make a successful sale. If you're unsure where to start, why not get in touch for some free, no obligation advice?
Until next time...
Paul Dobbs
Sales Director
About the Author...
