You might be wondering if your house or flat is a property you can sell. Home House Buyers has the short answer: yes. But they also explain why it is more complicated than you think.
Is it possible to sell your short lease flat? Although the short answer to this question is yes, there are many trade-offs that must be made. You should also be aware that there may be restrictions that will affect the time of the sale and the final price.
What Is A Short-Term Lease?
If the lease term is less than 80 years, a property is considered a short-term lease. It can vary depending on the location of the property. Because of the higher number of flats in London, short-term lease properties are more common. When a property is first bought, it will typically have a lease period of between 99 and 999 years. The lowest leases are typically around 70 years. However, this can vary in some cases.
First-time buyers are less likely to buy properties with shorter leases. There are still ways to sell a flat that has a shorter lease. A company like home house buyers, which specializes in quick sales of properties, will take advantage of the market conditions to help sellers get the highest value for their house or flat.
Is It Possible For A Property To Be Extended On A Short-Term Lease?
Short leases are a major headache for property owners. Many look into extending their lease. It is possible to extend a lease for a property that has a short lease, provided you adhere to current property laws.
It can be difficult to predict the cost of your lease extension. Although it is possible to estimate the cost of extending your lease using a leasehold calculator, you will need to serve a section42 notice to obtain an exact cost. This is a request by the leaseholder to the freeholder for an extension of their lease on a property.
What Is The Time Frame For Extending A Lease?
If you are interested in having your short lease for your flat extended, you will need to hire a surveyor to conduct a property valuation. This will be sent to your lawyer. Your solicitor will then serve a section 42 notice on either your landlord or your freeholder, informing them of the premium that you are willing to pay to extend your lease. The individual or organization then has two months to accept or reject the extension.
Negotiations rarely reach court. This is usually because an agreement on a premium has not been reached. You and your landlord/freeholder’s surveyors will be in the best position to negotiate a suitable premium for the lease extension. The lease extension can be completed in two months if the parties cooperate without any issues.
Can You Rent A Short-Term Property?
You might wonder if you can sell your lease if you don’t plan to extend it. The answer is yes. It is possible to sell a property with a short lease because every property has an intrinsic value. If the lease is extremely short, potential sellers should keep in mind that it’s unlikely they will get a high price for their property. These sales should be done only if you are in urgent need of capital.