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Selling House With Short Lease.

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How do you get the best price for a property with less than 50 years left to run on the lease?

The lease can be extended for 99 years for around £6000, but the freehold would be the same price. I have read about Assignment where you can start the process of extending the lease on flats then let the new owner complete it - don't know if houses are included though.

The problem is lack of cash - no money to buy the freehold/extension of lease. What's the best course of action? Selling the house as it is means fewer potential buyers due to lenders not giving mortgages on short lease properties.

Borrowing the money to buy the freehold might work, but from whom? The owner would much prefer to avoid being in debt to a bank if possible (no mortgage on the property at the moment), and is on benefit - so would a loan be practical anyway? How could repayments be made? What about auctioning the property? Would that be sensible?

The property was due to be sold privately, avoiding an estate agent, but does anyone think it's better to get one involved?

Any ideas are welcome, please.

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How do you get the best price for a property with less than 50 years left to run on the lease?

The lease can be extended for 99 years for around £6000, but the freehold would be the same price. I have read about Assignment where you can start the process of extending the lease on flats then let the new owner complete it - don't know if houses are included though.

The problem is lack of cash - no money to buy the freehold/extension of lease. What's the best course of action? Selling the house as it is means fewer potential buyers due to lenders not giving mortgages on short lease properties.

Borrowing the money to buy the freehold might work, but from whom? The owner would much prefer to avoid being in debt to a bank if possible (no mortgage on the property at the moment), and is on benefit - so would a loan be practical anyway? How could repayments be made? What about auctioning the property? Would that be sensible?

The property was due to be sold privately, avoiding an estate agent, but does anyone think it's better to get one involved?

Any ideas are welcome, please.

You need to find some way to extend the leaese.

You are never going to get a good price without it

tim

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how many years is considered short ?

IIRC the current standard is that anything less that 30 years after the repayment of the (25 year) mortgage (used to be 25 years after) is unmortgagable.

tim

Edited by tim123

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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