Residential Chartered Surveyors - Selling a Property
Lease Extensions: Selling a property with a lease length below 80 years may be difficult because mortgage lenders can be reluctant to take the property as security due to the reducing value each year. If you are the leaseholder and the property has a low lease length, you may need to start looking at an extension to get the best value for money.
At a lease length of below 80 years, the value of the property can start to decrease and the price to extend the lease will begin to climb. As the lease length continues to shorten the premium costs payable to the freeholder rise sharply.
This is because once the lease length drops below 80 years, you will then be required to pay 50% of the property’s ‘marriage value’ (the amount of extra value that having a lease extension will add to the property’s value) on top of the usual cost of the lease extension to the freeholder.
Tyser Greenwood Chartered Surveyors have an excellent team of RICS regulated chartered surveyors who can help you with your Lease Extension needs. Our RICS qualifies Chartered Surveyors can help you: