A longer lease = how much added market value?

Dawn248

I had a survey done on the flat I am buying which came back at 10k less than my offer. I went back to the estate agents to renegotiate. Looking at other flats on the market and how long they are taking to sell, I think the new price is a fair one.
I've had a call from the EA saying the developer has asked them to contact the surveyor and query the valuation. I sent the last page of the survey to the EA and it estimates the lease as being 85 years but they say it's actually 150 and this will increase the value but my question is by how much?
I've called the surveyors to let them know they'll be getting a call from the estate agents but pacing the floor in the meantime.

kingstreet

85 years or more is the kind of remaining term which would attract 'normal' price. Any less and the property would be valued less.

If, following enquiries, the lease is shorter, the valuation will be referred back to the surveyor by the lender for him to determine if a new value should be reached.

IMHO a longer lease would have no upward impact on value.

kingstreet

Interesting.

Nationwide surveyors always slap 85 years on every valuation, even when we've submitted an application which states the lease has 246 years left to run.

That's because their minimum is 85 (mortgage term + x).

Not one has been re-valued when the solicitor informs the lender we were right in the first place.

always_sunny

is it possible you've just over offered?
Does the survey say why the valued at the price? The lease will not be the reason unless it's really short (less than 70 yrs).