Sell a property with a short lease to Open Property Group
As experienced Freeholders we are looking to purchase leasehold flats throughout England and Wales with a focus on leases with less than 80 years to run. These types of properties can often be very difficult to sell in the current market with mortgage finance difficult to find for leasehold flats with less than 70 years remaining on the lease. In some instances flats will be unsaleable to the general market. We are able to provide you with a guaranteed cash offer for your flat regardless of the length of its lease.
Sell your flat with a short lease
We are experts at buying leasehold property where the lease length is below 80 years unexpired. At this point the flat’s value really starts reducing, and it steadily becomes less saleable. This is because the cost of purchasing a lease extension becomes significant and continues to rise, the flat will have less appeal to buyers, and mortgage lenders are increasingly unwilling to lend on flats with short leases.
So the longer you put off extending your lease means:
- The flat will become relatively less valuable
- The flat will become more difficult to sell on the open market
- The cost of purchasing a lease extension will continue to increase
If you are selling a flat or maisonette with a short lease then do not hesitate to contact our team of advisors. We purchase all leasehold properties with short leases. We will be able to make you an offer the same day you call us and will buy your lease in its current form. Unlike our competitors, we will not need to write to your freeholder to find out what your lease will cost to be extended. This means we can buy all short lease properties fast and hassle-free.
We have proved to many flat and apartment owners that a short lease is not a problem for us. Open Property Group specialises in buying properties where the lease may be considered short – even less than 80 years. Many sellers of short lease properties come to Open Property Group as their High Street agent has failed to sell their flat, or they are fed up with a drawn-out process.
In fact, some of our clients tell us their agent didn’t book a single viewing. For us, a short lease is no problem and we’d be delighted to make you a cash offer on any type of short lease flat.
Your questions answered about selling short lease flats
How much will I have to pay the Landlord if I want to sell my short lease flat?
The Landlord is entitled to receive compensation for the loss of the ground rent income to be paid under the current lease, together with the loss of the right to receive the value of the flat at the end of the current lease.
In simple terms this is the difference in value of the Landlord’s interest today under the present lease, and the value of his interest after the grant of the new lease with the additional 90 years. He is also entitled to receive a share of the marriage value and compensation for loss arising from the grant of the new lease.
Why do I need to extend my lease?
The need for your lease extension arises because as your lease gets shorter the value of your flat (or maisonette) will go down compared to a similar flat which has a long lease of, say, 100 years or more. This reduction in value is much less pronounced in the early years, but it’s when your lease gets to less than 80 years remaining that the real problems start.
Sell your short lease flat fast with Open Property Group. Contact us today and let us free your capital.
The transfer of property ownership from one person to another is a legal transaction and a solicitor will ensure the process follows the letter of the law. It’s no different when a property has a short lease. In fact, selling a leasehold property can be more complex than selling a freehold one, so a good solicitor is vital. As we know how important the legal side of selling a short lease property is, Open Property Group recommend an independent solicitor who is experienced in leasehold properties and we'll even pay your legal fees for one less thing for you to worry about.
Short Lease Frequently Asked Questions
The cost of selling a flat or maisonette is dependent on the channel of sale which you choose. Open Property Group are a direct, professional property buyer. Therefore, there are no fees when selling to us. You won't pay an agent, and we pay your legal fees too.
We will work to your timescale. Typically, we purchase short lease flats within 28 days from receipt of the legal documents from your appointed solicitor. That said, if you want to sell within days, and not weeks, we will proceed on this basis.
You will need a solicitor, however, Open Property Group pay your legal fees in respect of a sale. We will just need to know the contact details of the freeholder.
Open Property Group can provide a recommended solicitor, which is free of charge. Alternatively, you can appoint your own solicitor.
The property market is cyclical, however there is very little difference between prices and seasons. The shorter the lease, the higher the premium to extend. Therefore, do not delay selling a short lease property, as the longer you wait, potentially the larger impact on the value.
We estimate the long lease value of the property, and provide a valuation of the potential cost to extend the lease. The lease premium will vary dependant on various factors, namely; The long lease value, the ground rent, the unexpired term of the lease and comparable short lease property sales within the location of the property.
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