Trying to sell, Lease concerns

LouBlue

Hi guys.

Flat has been on the market a fair few months, we can't drop it anymore as we have to pay off the mortgage, so hardly any viewings obviously as there are a lot more flats cheaper than ours around.

Saying that, EA rang me yesterday to say that a lady that had viewed the flat is very interested but she is questioning the Lease and a possible extension. We have 77 years left on it, EA is going to ring the Solicitors that deal with payments of ground rent and buildings insurance. I have not had any correspondence from the freeholder (Managing Agent) since I bought the flat (9 years ago).

I have gone on the lease calculator and it says roughly £6k-£7k. Will the potential buyer want to knock that off the price? Just very disheartening, we would love to drop the price but we have to cover the mortgage. We aren't looking for a profit just desperate to move. First time we get a 'maybe' then this Lease question comes up. Don't know how we are ever going to sell!

Any ideas?

david29dpo

77 years on a lease should not raise any concerns with a buyers solicitor.

LouBlue

david29dpo wrote: »

77 years on a lease should not raise any concerns with a buyers solicitor.

I hope not. All depends if the buyer wants an extension I suppose. Thanks.

Entertainer

Below 80 years, you are at marriage value. The next benchmark is 70 years, below which many lenders will not offer mortgages. Obviously as time goes on, the cost of an extension goes up.

You have a fairly savvy buyer if they are raising this but if a lease was less than 80 years I would certainly be thinking of it myself.

Go here for more advice:

http://www.landlordzone.co.uk/forums/