My Property Selling Expert - Properties with Short Leases

Lease Length: Determine the exact number of years remaining on the short lease.
Ground Rent and Service Charges: Understand the current ground rent, service charges, and any upcoming increases or changes.
Lease Extension Costs: Get an estimate of the cost to extend the lease. This might include legal fees, valuation fees, and the premium for the extension itself.

Value Impact: Recognise how the short lease term affects the property’s market value. Properties with short leases are typically worth less than those with longer leases and probably won’t be viewed as suitable mortgage security by most lenders.
Target Audience: Identify potential buyers, such as investors, cash buyers, or those looking for a project.

Extend Before Selling: If feasible, consider extending the lease before putting the property on the market. This can make the property more attractive and fetch a higher price.
Sell with Short Lease: If extending the lease is not possible or practical, prepare to sell the property with the short lease and provide potential buyers with information on extension costs.

Estate Agents: Work with an estate agent experienced in selling properties with short leases. They can provide valuable insights and market the property effectively.
Auction: Selling at auction can attract investors and buyers looking for a deal. This method might lead to a quicker sale but may not achieve the highest price.
Direct Sale: Consider selling directly to a cash buyer or investor who is familiar with short lease properties and offers the certainty of a sale.

Highlight Positives: Emphasise the property’s strengths, such as location, size, and unique features, to attract buyers despite the short lease.
Be Transparent: Clearly disclose the lease terms, including the remaining length, ground rent, service charges, and any relevant information about extending the lease.

Understand Buyer Concerns: Buyers may request a price reduction due to the short lease. Be prepared to negotiate and understand your minimum acceptable price.
Provide Information: Offer detailed information about the process and cost of extending the lease to help buyers make informed decisions.

Leasehold Expertise: Work with a Solicitor experienced in Leasehold properties to handle the legal aspects of the sale.
Full Disclosure: Ensure all lease terms and any relevant issues are fully disclosed to avoid legal complications.

Smooth Process: Ensure all paperwork is in order and the legal process is handled efficiently. This includes transferring the lease to the new owner.
Flexibility: Be prepared for delays or complications, particularly if the buyer needs to arrange financing, which will be more difficult with a short lease..

Consider Incentives: Offering to cover some of the lease extension costs or other incentives can make the property more attractive to buyers.
Flexibility: Be open to different selling methods and be flexible with negotiations to increase the chances of a successful sale.

Selling a property with a short lease requires a strategic approach that includes understanding the lease terms, evaluating the market, deciding on extending the lease, and effectively marketing the property. By working with professionals and being prepared for negotiations, you can successfully sell your property even with a short lease.
Contact My Property Selling Expert and let us guide you through the process

Short Lease