Most leasehold flats (they are very rare on houses) when built were given a lease of 999 years. However many were only for 125 or 99 years.

A short lease is where a has an unexpired term is less than 80 years. At the end of the remaining 80 years the flat will be worthless as the freeholder will reclaim the land.

These flats usually have to be sold below the price of similar flats because most lenders do not want to provide finance on what is a rapidly depreciating asset. The depreciation increases after 80 years because of a technical lease calculation known as a “marriage value”. The result is that the land becomes more valuable as the lease on the property gets closer to expiry.

The good news is that leases can be extended. The bad news is that some freeholders are greedy and try to extort a huge fee for extending the lease.

This can make selling your flat very difficult. You either have to pay for a lease extension or you will have to accept a disappointingly low price for your flat, and a delayed sale as there are not many people who are confident in buying a “short lease”, and even less who have a lender who is willing to provide a mortgage on such a property.

Alternatively you can contact me because I have a couple of ways that I can help you.

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