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Value Of A Flat With A Short Lease?
star88
Posts: 15 Forumite
Hi Everyone
How does a flat with a short lease affect the propery value :-
50 years remaining on lease = 50% of full value
60 years remaining on lease = 60% of full value
Would above be a good formula?
Any comments and advise grateful
How does a flat with a short lease affect the propery value :-
50 years remaining on lease = 50% of full value
60 years remaining on lease = 60% of full value
Would above be a good formula?
Any comments and advise grateful
0
Comments
-
no.
there are a couple of ways you can think of the value of such a property.
But probably the easiest is to figure out what it would be worth as a very long lease (i.e. a 'normal' flat), then try to get an estimation of what it would cost to extend the lease in 2 years time when you will be able to force it through.
For some lengths of lease you can use a calculator to get a guesstimate. The shorter it gets the harder it is to be so mechanical about it, as ultimately if you can't negotiate it then it will come down to what the leasehold valuation tribunal would decide.
Broadly speaking the speed of the decline in value accelerates as the lease shortens.
http://www.moneysavingexpert.com/mortgages/extend-your-lease
more resources at lease-advice.org.0 -
Use the MSE lease extension calculator. Take the value you get on there off the value of the property. That will correct for a short lease. http://www.moneysavingexpert.com/mortgages/extend-your-lease0
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