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Short lease flats. Sell your flat with a short lease. Sun, 17 Nov 2013 12:15

Are you having difficulty finding a buyer for your short lease flat? Many leaseholders need to extend their lease when it falls to 80 years or less because mortgage companies do not generally lend against flats with short leases.


Flats with short leases are much harder to sell, and the value is discounted to less than the value of a flat with a long lease, typically over 80 years.

Estate agents usually do not have the experience to accurately value flats with short leases, thus they come on to the market at too high prices, and stick around for a long time.

It's likely that even if you are fortunate to find a buyer, their solicitor will advise them not to proceed unless the lease is extended, or an allowance is made from the price. If the flat is vacant, the flat owner will have the continuous financial responsibility of paying for service charge, ground rent, insurance, council tax, and security until the property sells.

The process of extending a lease is fairly complex, and it's wise to take professional advice from a surveyor or solicitor who will be able to advise you on the process, fees, and cost of extending the lease. The shorter the lease, the more expensive it will be to extend, as the main method of valuation relates to "marriage value" and this is the premium paid between the value of a long lease, and the value of the existing lease, and it is calculated based on the value of the flat. This means that the higher the value of the flat, the more costly the lease extension will become.

The owner will also need to pay for a lease extension valuation, and you will need to pay the costs of the freeholder, including their solicitor fees too. These costs could be in excess of £4000, although some freeholders and their solicitors will charge considerably less.

Dreamhouse Buyer has lots of experience in buying flats with short leases, and will make a cash offer for any short lease flat, regardless of the length of lease.

Richard Hill, Founder of Dreamhousebuyer comments:

"We are cash buyers of property, and do not need to rely on banks or raising finance. This enables us to make immediate decisions on any property purchase, including flats with short leases. We have great experience in this area, and have bought many flats with very short leases, even as low as 30 years remaining.

Due to our experience, we can work out the necessary calculations, and negotiate with the freeholders. We will also buy flats with sitting tenants that have a short lease too. When you sell your flat quickly to us, you limit all of your costs in the meantime such as those mentioned above (service charge, ground rent, mortgage payments, insurance, maintenance)".

Find out why we are different to other quick sale house companies >>> here.

Dream House Buyer is a family owned property buying company that considers all types of property, and we buy property with sitting tenants too, regardless of whether they have been there for 6 months, or 60 years.  We will make an instant cash offer for any property in the UK, regardless of the size, location, condition or value.

We will buy any property that you might consider a problem - including property with sitting tenants, flats with short leases, problem tenants, unmortgageable and structurally damaged property.  We also buy ground rents and portfolios. If you think we can help, then please invite us to make you an immediate cash offer for your property.

Contact us on 0800 1577 497 or email us info@dreamhousebuyer.co.uk


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